If you read any of the stories, you'll understand that as a folk character, Paul Bunyan has clearly been overly exaggerated, if he existed at all. That makes him a tall tale.
Because they can grow each time they are re-told.
Paul Bunyan is a giant lumberjack who, with his donkey, can chop wood faster than anyone else.
8 feet and 2 inches
No, he is called a "tall tale". Fairy tales involve fantastic creatures like fairies and goblins and witches and ghosts.