react-native-version-info
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Version Check From Store
Can this library be used to get the latest app version by parsing google play store, apple app store's app information?
Maybe. As the docs state this module reads the native manifest to retrieve the info. Thus if the store version is the same as the manifest, then yes. (I highly suspect that this is the case. Stores read the manifest as well.)
This module does not read any information from a store.
If yes how can it be set up?
I don't understand. You follow the steps in the README.md
I believe what you were looking for was either react-native-version-check or react-native-store-version. These libraries can fetch the latest version available on the store.