Sri Vaishnavas believe Krishna to be an incarnation of Vishnu. On the other hand, Gaudiya Vaishnavas say Vishnu is an expansion of Krishna and quote certain verses from the Srimad Bhagavatam to support their views. One of these verses are given below:
narayanas tvam na hi sarva-dehinam
narayano ’ngam nara-bhu-jalayanat
tac capi satyam na tavaiva maya (Srimad Bhagavatam 10.14.14)
Translation: Are You not the original Narayana, O supreme controller, since You are the Soul of every embodied being and the eternal witness of all created realms? Indeed, Lord Narayana is Your expansion, and He is called Narayana because He is the generating source of the primeval water of the universe. He is real, not a product of Your illusory Maya.
How do Sri Vaishnavas interpret the above verse?