AFAIK the Old Testament says that the Isrealites/Jews are God's chosen people, and many Christians and Jews today believe it in varying degrees.
Since Islam also is based on the same book, why don't the Jews have a special place in the Quran and Islam?
Actually, Jews and Christians are referred to as 'people of the Book'; consequently, they do have (had) a special place in Islam.
If I remember correctly, Muslims descend from Ismael while Jews descend from Israel. That is, each from one of the two sons of Abraham.
I don't quite see how a religion can 'descend', except in a figurative way; Muslims do not 'descend' from Ishmael, nor do present-day Jews 'descend' from Israel. It contradicts conversion, which has played a significant part in both Judaism and Islam.