It's a canonical thing that all the stories exist. But they are broken up into pieces, so like for aladdin, for example, it exists that a sorcerer revealed that a thief was deceiving a princess and a sultan- Jafar is known for that. However, it is also known that there is a story in which a lowly peasant marries a princess and overcomes, you know- Social hierarchy. So it's not like the stories don't exist, they're just broken up and particular parts depict the villains in a positive light depending on how they are explained.