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Word for word:
atra api — in this very matter; udāharanti — they cite as example; imam — this; itihāsam — a historical narration; purātanam — ancient; avadhūtasya — of a holy man acting outside the scope of ordinary regulative principles; saṁvādam — the conversation; yadoḥ — and of King Yadu; amita-tejasaḥ — whose power was unlimited.
In this regard, sages cite a historical narration concerning the conversation between the greatly powerful King Yadu and an avadhūta.
Lord Kṛṣṇa will narrate this story to show Uddhava how rational intelligence can be utilized in bhakti-yoga to acquire Vedic knowledge and how ultimately an intelligent person will come to the lotus feet of the Supreme Personality of Godhead.