Are the Jews the chosen people?
The Quran testifies that Allah had chosen the Children of Israel (Israel being the Prophet Ya‘qoob / Jacob ﷺ (peace be upon him)) at their time, and that He preferred them over all other people of their time. There are many verses in the Quran in this regard.
However, they were not chosen for their race or colour, but it was due to the great number of Prophets, may Allah exalt their mention, that were sent to them. Allah will always favour those who believe in Him and do good deeds, regardless of their colour, race or nationality. Allah says in the Quran:
Whoever does good, whether male or female, and is a believer, We will surely bless them with a good life, and We will certainly reward them according to the best of their deeds.
Quran - 16:97(interpretation of the meaning)
Prophet Muhammad ﷺ (peace be upon him) said:
The children of Israel were governed by Prophets, every time a Prophet dies, another Prophet would come to them.
Sahih Muslim, 1842
Allah says in the Quran:
And [mention O Muhammad], when Moses said to his people, “O my people, remember the favour of Allah upon you when He appointed among you Prophets and made you possessors and gave you that which He had not given anyone among the worlds.”
Quran - 5:20(interpretation of the meaning)
Allah further says:
And We certainly chose them by knowledge over [all] the worlds.
Quran - 44:32(interpretation of the meaning)
Yet, they were ungrateful for this bounty and denied what the Prophets brought to them. Thus, they deserved Allah's wrath and curse. They have been put under humiliation [by Allah] wherever they were overtaken, except for a covenant from Allah and a treaty from the people, and Allah made of them apes and pigs.
During the life of Prophet Muhammad ﷺ (peace be upon him), the Jews always claimed that they were the chosen beloveds of Allah. Allah revealed the following verse in response to them:
And the Jews and the Christians say: We are the sons of Allah and His beloved ones. Say: Why does He then chastise you for your sins? Nay, you are mortals from among those whom He has created.
Quran - 5:18(interpretation of the meaning)
To conclude, the Jews were preferred over other people at the time of their Prophets as they sometimes obeyed them, but most of the time they belied them and even killed them. Allah says in the Quran:
But it is [not] that every time a messenger came to you, [O Children of Israel], with what your souls did not desire, you were arrogant? And a party [of messengers] you denied and another party you killed.
Quran - 2:87(interpretation of the meaning)
However, when Allah sent the Prophet Muhammad ﷺ (peace be upon him) as the last Messenger, Allah considered the best people those who followed him. Allah says in the Quran:
You are the best community ever raised for humanity—you encourage good, forbid evil, and believe in Allah. Had the People of the Book believed, it would have been better for them. Some of them are faithful, but most are rebellious.
Quran - 3:110(interpretation of the meaning)
Allah further says:
And thus We have made you a median [i.e. just] community that you will be witnesses over the people (...)
Quran - 2:143(interpretation of the meaning)
Since this was the situation, the Jews at the time of the Prophet Muhammad ﷺ (peace be upon him) were not better with him than they were with the previous Prophets, may Allah exalt their mention, rather they belied him, and harmed him and even plotted to kill him.
Source:
islamweb.net
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islamqa.org (Fatwaa.com)
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islamqa.info
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islamweb.net