The operators of localized spins within a magnetic material commute at different sites of its lattice and anticommute on the same site, so they are neither fermionic nor bosonic operators. Thus, to construct diagrammatic many-body perturbation theory, the spin operators are usually mapped to the bosonic ones with Holstein-Primakoff (HP) transformation being the most widely used in magnonics and spintronics literature. However, to make calculations tractable, the square root of operators in the HP transformation is expanded into a Taylor series truncated to some low order. This poses a question on the range of validity of truncated HP transformation when describing nonequilibrium dynamics of localized spins interacting with each other or with conduction electron spins. Here we apply exact diagonalization techniques to Hamiltonian of fermions (i.e., electrons) interacting with HP bosons vs. Hamiltonian of fermions interacting with the original localized spin operators in order to compare their many-body states and one-particle equilibrium or nonequilibrium Green functions. The Hamiltonian of fermions interacting with HP bosons gives incorrect ground state and electronic spectral function, unless large number of terms are retained in truncated HP transformation. Furthermore, tracking nonequilibrium dynamics of localized spins over longer time intervals requires progressively larger number of terms in truncated HP transformation. Finally, we show that recently proposed [M. Vogl et al., Phys. Rev. Research 2, 043243 (2020); J. K\"{o}nig et al., SciPost Phys. 10, 007 (2021)] resummed HP transformation resolves the trouble with truncated HP transformation, while allowing us to derive an exact (manifestly Hermitian) Hamiltonian consisting of finite and fixed number of boson-boson and electron-boson interacting terms.