All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
The fact is that whoever tries to undermine the importance of the Hadeeths (narrations) of the Prophet, sallallaahu ‘alayhi wa sallam, or say that there is no need for them, commits a grave mistake. That is because the Prophet, sallallaahu ‘alayhi wa sallam, is the one who can convey and explain the Message of Allaah The Almighty. Allaah The Almighty Says (what means):
• {And We revealed to you the message that you may make clear to the people what was sent down to them.} [Quran 16:44]
• {And We have not revealed to you the Book, [O Muhammad], except for you to make clear to them that wherein they have differed.} [Quran 16:64]
• {And whatever the Messenger has given you - take; and what he has forbidden you - refrain from.} [Quran 59:7]
Imaam As-Suyooti in his book Miftaah Al-Jannah fil-Ihtijaaj Bis-Sunnah, said,
“You have to know, may Allaah have mercy upon you, that whoever denies the Hadeeth of the Prophet, sallallaahu ‘alayhi wa sallam, whether expressed in words or action, that met all the conditions of authenticity set by scholars, is a proof of disbelief and he would be no longer within the fold of Islam and would be gathered together with the Jews and the Christians or with any other group of disbelievers.”
As for what you have asked about, there is no contradiction between the Hadeeth: “No envy except in two (things)” and the reports that criticize envy.
The prohibited kind of envy, according to the scholars, means wishing that a blessing that Allaah The Almighty has bestowed upon the envied person be taken away. It is an abhorrent act.
As for what is mentioned in the Hadeeth: “No envy except in two (things)”, what is actually meant here is admiration, which is unlike envy, where one wishes for himself a blessing like that which someone else has, without wanting it to be taken away from the other person. Actually, the word envy here is used as a kind of rhetoric language.
Ibn Hajar in Fat-hul-Baari, said,
“The kind of envy that is mentioned in the Hadeeth is admiration. It is rhetorically used in this regard. It is to wish for a blessing like that which someone else has, without wanting it to be taken away from the other person. It is a good form of competition, as if he, (i.e. the Prophet, sallallaahu ‘alayhi wa sallam), is saying, ‘There is no better or greater admiration than admiration regarding these two things.’”
Consequently, there is no contradiction between criticizing envy and the envy that is mentioned rhetorically in the Hadeeth.
Allaah Knows best.