Is the circulating story about the Prophet of Allah, Jesus, peace be upon him, and the Jew who denied the third loaf of bread, and the subsequent events concerning the blind man and the river, and the transformation of dust into gold, and the killing of the Jew and the three knights, true?

This story is from the Israʼiliyat (Judeo-Christian traditions) which are neither to be believed nor disbelieved, according to the saying of the Prophet, peace and blessings be upon him: "Do not believe the People of the Book, nor disbelieve them." This means that it could be true or false, because Allah informed us that they altered the Book. It is permissible to narrate it for admonition and preaching, without asserting its authenticity, unless it is known to be false.