Your second part of question - Discrmination against --- Its unclear
Here are some more details that shall help you understand Jews and Islam { connection } better. It is from Quran and hadith. On the whole - its a fact
The Children of Israel remained on the straight path for a period of time after Moses. They then innovated in the religion and some of them even worshipped the idols. Yet, there were always Prophets sent among them who would command them to work righteous deeds, refrain from doing evil and who would rule them according to the commands of the Torah. When they (Israelites) committed the evil that they committed, Allah caused their enemies to overwhelm them, and many fatalities fell among them as a consequence. Their enemies also captured a great number of them, and took over large areas of their land. Earlier, anyone who would fight the Israelites would lose, because they had the Torah and the Tabut, which they inherited generation after generation ever since the time of Moses, who spoke to Allah directly. Yet, the Israelites kept indulging in misguidance until some king took the Tabut from them during a battle. That king also took possession of the Torah, and only a few of the Israelites who memorized it remained.
The prophethood halted among their various tribes and only a pregnant woman remained of the offspring of Lavi (Levi), in whom the prophethood still appeared. Her husband had been killed, so the Israelites kept her in a house so that Allah may give her a boy, who would be their Prophet. The woman also kept invoking Allah to grant her a boy. Allah heard her pleas and gave her a boy whom she called `Shamwil' meaning `Allah has heard my pleas.' Some people said that the boy's name was Sham`un (Simeon), which also has a similar meaning.
As that boy grew, Allah raised him to be a righteous person. When he reached the age of prophethood, Allah revealed to him and commanded him to call (his people) to Him and to His Tawhid (Oneness). Shamwil called the Children of Israel (to Allah) and they asked him to appoint a king over them so that they could fight their enemies under his command. The kingship had also ended among them. Their Prophet said to them, "What if Allah appoints a king over you, would you fulfill your vow to fight under his command''
They said, "Why should we not fight in Allah's way while we have been driven out of our homes and our children' But when fighting was ordered for them, they turned away, all except a few of them. And Allah is All-Aware of the wrongdoers".
"And their Prophet said to them: "Verily! The sign of His kingdom is that there shall come to you At-Tabut, wherein is Sakinah (peace and reassurance) from your Lord and a remnant of that which Musa (Moses) and Harun (Aaron) left behind, carried by the angels. Verily, in this is a sign for you if you are indeed believers"
Ibn Jurayj stated that Ibn `Abbas said, "The angels came down while carrying the Tabut between the sky and the earth, until they placed it before Talut while the people were watching.'' As-Suddi said, "The Tabut was brought to Talut's house, so the people believed in the prophethood of Sham`un (Simeon) and obeyed Talut''.
Then it was followed by marching there armies and there was a trial from Allah swt --- then comes the prophethood of Dawud AS. You can read it in detail in the very second chapter and its verses are from 240s.--
Yes the main difference that arose was the covenant which Allah took from them in the Tawrah, that, He will send a great Prophet - meaning Muhammad - from among the offspring of Isma`il, who will be obeyed by all peoples.
They used to say, `O Allah! Send the Prophet that we read about - in the Tawrah - so that we can torment and kill the disbelievers alongside him.' When Allah sent Muhammad and they saw that he was not one of them, they rejected him and envied the Arabs, even though they knew that he was the Messenger of Allah. So , Allah said
"Then when there came to them that which they had recognized, they disbelieved in it. So let the curse of Allah be on the disbelievers".
Hope brother, you got an idea of Jews and there "connection" to Islam. May Allah swt help you to understand the truth and accept it. If its still unclear, you can ask us any of your doubts. InshaAllah, shall try to clear them