"Play the fool" means that someone else made a fool out of you. Usually it will mean that you believed someone and they took advantage of you. I've also never heard "play the fool with someone."

To play the fool means to be silly or cause trouble - to be a bit of a joker. I've not really come across the phrase "to play the fool with someone" but I guess it means to be silly with someone else or to cause trouble with another person.