In this context that's a rather small difference though. At that point the discussion is not anymore about if it's wrong or right to rewrite stories and tell rewritten stories to children, it's more about the rights of the author to not be associated with work that isn't theirs.
No, it's about not being lied to when looking up a work of fiction.
Revisionism of historic facts and artwork is one of the oldest forms of political manipulation and has never served a good purpose, no matter how well meant. If you want to alter a story, make it clear that you altered it, don't replace the original with your version and then lie to people.
The article is talking about the Disney adaptation of The Little Mermaid. I don’t think anyone went to see that assuming that it was a 100% faithful adaptation of the original text (insofar as such a thing exists in this case) so I don’t see that anyone is being lied to.
I think OP is referring more to the current 2020s trend of book publishers making posthumous edits to classic books (such as Roald Dahl's) to remove things that are problematic to modern PC codes.
(1) HC Andersen writing his own version of an old story, and
(2) A 2024 editor rewriting HC Andersen's story and selling that as written by HC Andersen.