Their “lore” story has the same validity as the vaporeon copypasta as it was
A. Cut from the final product everywhere
B. Possible someone made it up
C. This was only revealed when files were stolen from Nintendo and was likely the very first draft they had for some “lore” (taking existing folktale and inserting Pokémon as needed). It’s only weird that Nintendo just didn’t delete these as they were never going to be put in a game marketed to children.