Warning the disbelievers of the Quraysh for rejecting His Messenger Muhammad ﷺ, Allah says that He destroyed other nations who rejected the Messengers after Nuh. This indicates that during the centuries between Adam and Nuh, humans were following Islam, as Ibn `Abbas said: "Between Adam and Nuh there were ten generations, during all of which humans were following Islam." The meaning (of the Ayah) is: "You disbelievers are not more dear to Allah than they were, and you have rejected the most noble of the Messengers and the best of creation, so you are more deserving of punishment."
(And sufficient is your Lord as All-Knower and Seer of the sins of His servants.) means, He knows everything they do, good and evil, and nothing at all is hidden from Him, may He be glorified and exalted.
Ma'arif al-Qur'an
Mufti Muhammad ShafiOn ayahs 16–17
Sequence
Previous verses said that it is the customary practice of Allah Ta` ala that he does not send punishment upon a people until the commandments of Allah reach them through the blessed prophets which they still refuse to obey. Given in the verses cited above is what happens on the other side when the messages of Allah and His Messenger do reach a people and they still show contumacy, then, a mass punishment is sent over them.
Commentary
A doubt and its answer
A surface look at the expressions: اِذا اَرَدنَا (idha aradna: when We intend) and, after that: اَمَرنَا (amarna: We command) in verse 12 could have triggered the doubt that destroying those people was the divine purpose from the very beginning. Therefore, they were first commanded to believe and obey through the prophets, then their indulgence in sin was made to be the cause of punishment. All this came from none but Allah Ta` ala. Is it not? If so, would these innocent people not be just about a helpless and excusable lot? The answer is that Allah Ta’ ala has given man reason and choice and has determined the ways of reward and punishment. Now, if someone elects to do nothing but what brings punishment, then, it is the customary practice of Allah that He would activate the causes that bring the same punishment. Thus, the real cause of punishment they receive is nothing but their own resolve and determination to remain on the side of disbelief and sin. Since this is no simple intention, therefore, they cannot be helpless and excusable.
The conduct of the leading group of a community is the chief indicator of the level of honesty or corruption of the community’s members. Only this group has the understanding and resources to influence their inferiors. Only they can bear the cost of leadership. This is why the reformation of the prominent group amounts to the reformation of the whole community and the corruption of this prominent group amounts to the corruption of the whole community. If a study is made of communities right from the time of Noah to the present day, the history of each community will confirm the correctness of this general principle. Those leading lights, or elders of the community, who exploit the people to establish their leadership, teach the community emotionalism instead of realism; they teach the community to live in wishful thinking, instead of admitting the truth. In short, instead of making the community attentive to God, they turn it away from God by making it attend to worldly concerns. By thus misleading the community, they bring about its destruction. When leaders of this kind dominate a community, it is to be expected that God has taken a decision to destroy it. Every event of this type happens by God’s will, for no deed or misdeed of any person or community is hidden from Him.
Uthmani text of the Madinah mushaf (King Fahd Complex). Translation: Saheeh International. Tafsir via Quran.com.