This seems relatively benign, to be honest. If we went back and rewatched the match and what he's describing didn't happen, or if he's overstressing the crowd's reaction, that'd be different.
If anything, it almost helps Dave, because he's gone from the guy who "knows nothing because he's never been in a ring" to a guy who served in a director's/screenwriter consultant role on a PPV match.
On the other hand, his creditably is shot as a journalist. Now people will say that it is absurd to be a journalist in wrestling but he's making a living off of it.
We already knew he had friends in the business over the years, that they were often his sources, that he arguably gave them better coverage, and that he even fielded consultation calls for Vince at one point or another. I said relatively and I mean it. The bar wasn't super high. I don't think this lowers it in the least.
Dave has talked about this type of stuff all the time. He has talked, on several occasions, about giving advice and input to that worked PRIDE fight with Takada vs Coleman with the people involved in that.
I ignore even the worked MMA coverage?