Allah chose the Children of Israel knowingly over all other nations of their time:
Surah 44:32:
And We certainly chose them by knowledge over the worlds.
If God chose them by knowledge (‘ala ‘ilmin), His choice was not a mistake, nor was He blind to the future. He knew exactly what kind of people they were, how they handled scripture, and how they would pass down their history.
The very people chosen "by knowledge" in Surah 44 are the custodians of the Torah and the prophetic writings. Their entire history, identity, and textual tradition—which they preserved meticulously—testify to a specific theological framework:
God makes blood covenants.
God demands specific sacrifices for atonement.
God promised a Messiah who would be pierced for transgressions (Isaiah 53) and called "Mighty God" (Isaiah 9:6).