You can’t escape the fact that the verse is talking about companionship (see end of verse) and being “with” those companions. The purpose of this verse is to give hope to believers who feel insecure about their level of good deeds and righteousness, they are reassured that so long as they stick to obedience they will be granted the company of such people as the Prophets and Martyrs. The reason for this verse’s revelation also helps to clarify this:
Aisha (r) relates that a man came to the Prophet (s) and said: “O Messenger of Allah, indeed you are more beloved to me than my own self, indeed more beloved to me than my family and more than my own son. I was in my house and i remembered you, so i remained patient until i came to you and looked at you. When i pondered over my death and your death, i came to realise that indeed when you enter Paradise you will be among the Prophets, whilst i, if i were to enter Paradise, i fear that i would not see you.” So the Prophet (s) did not give him a reply until Gibrail descended with the verse: “And whosoever obeys Allah and the Messenger, they will be in the company of those upon whom Allah has bestowed His grace, of the Prophets, the truthful, the martyrs, the righteous, and how excellent these companions are.”
The hadith is recorded by at-Tabarani (d.360H) in his Mu’jam al-Awsat (1:29:1-2) and Mu’jam as-Saghir (p.12), also Tafsir at-Tabari (5:104) and Tafsir ibn Kathir (1/p.535). It is also related through the Companion Abdullah ibn Abbas.
The narration was proven authentic by Hafidh al-Haythami (d.807H) in Majma az-Zawa’id (7:7) and by Muhadith al-Albani (d.1421H) in Silsilah as-Sahihah (#2933).
In his commentary on 4:69, ibn Kathir (d.774H) writes: “Namely, whoever acts according to what Allah has ordered and His Messenger and abandons whatever Allah and His Messenger have forbidden, then surely Allah the Sublime will cause him to reside in the Home of Honour (Paradise) and grant him the companionship of the Prophets…” (Tafsir ibn Kathir 1/p.534)
Likewise, al-Qurtubi (d.671H) wrote in his Tafsir: “Namely, they are with them in one home and one blessing (i.e. Paradise), seeing them and being in their presence.”
As-Suyuti (d.911H) wrote in Tafsir Jalalayn whilst commenting on the words 'how excellent these companions are’: “Companionship in Paradise, since they will be with them there; seeing them, visiting them and being in their presence.”
And Allah knows best.
Iqbal