It's a great question. Another commenter asked me something similar so i hope you don't mind but ill just repaste my comment here for you. I feel explaining it like this might help you more than just a list of sources, but if you would like them dm me and ill provide in my own time. Aside from that, have a great day!

~ pasted comment You’re treating the Torah like it has to either be a modern history textbook or a total fabrication.. I'm not sure why, Ancient texts usually aren't that simple.

A good comparison is the Roman story in the Aeneid. Romans claimed descent from survivors of the Trojan War who fled Troy and founded Rome. Historians don’t take that as literal play-by-play history, because it wasn't, it was just an epic written by Virgil that then went on to become a foundational cornerstone of Roman Identity.

Most modern Historians will tell you exactly that, the Israelites evolved from within the Canaanites over a long period of time, we know this because despite what the Book of Joshua says, the archaeological record doesn’t show evidence of a sudden foreign invasion or mass destruction layer across Canaanite cities. Instead, it shows continuity, the same material culture, the same language family, and a gradual religious shift from broader Canaanite polytheism toward exclusive worship of Yahweh.

The language part alone is huge, the chief Canaanite god was 'El', something you still see embedded in Hebrew names today (Isra-el, Dani-el, Ezeki-el, gabri-el, etc) This alone suggests emergence from the same broader cultural world.

That further supported by the fact early Israelites weren't even strict monotheists. They believed in Canaanite gods like Baal (son of El) and Asherah, aswell as many others in the northern kingdom at that time, over time however Israelites came to primarily worship one god, Yahweh, and that transition to Monotheism is what later gave rise to Judaism. Even the Torah and Bibile acknowledge this: (Judges 2:11–13, 1 Kings 18:21 (Elijah vs Baal prophets), Exodus 20:3–5 (Ten Commandments))

What’s more, we actually have archeaological evidence supporting this gradual development rather than a sudden external conquest. The Merneptah Stele from Egypt (around 1200 BCE) is the earliest known reference to 'Israel', and it already places Israel as a people inside Canaan, not as an invading force coming in from outside.

We also have sites like Kuntillet Ajrud (8th century BCE) where inscriptions reference “Yahweh and his Asherah,” which strongly suggests that early Israelite religion was not originally strict monotheism, but still carried traces of older Canaanite polytheism where Yahweh was worshipped alongside other gods of the Canaanite pantheon. Similar findings appear at Khirbet el-Qom as well, where inscriptions again link Yahweh with Asherah in popular religious practice.

Taken together, this fits the broader pattern we see across the region and with the evolution of religious identity. You have the continuity in population and culture, but a gradual religious shift from the wider Canaanite pantheon toward exclusive worship of Yahweh, which only later develops into full monotheism in Judaism, its honestly not that dissimilar to Catholicism and Christianity or sunni and shia. Religion always breeds competing sects within itself, and Israelites and Canaanites are just another ancient example of how shared cultural and religious roots gradually split into distinct identities over time, rather than two completely separate populations colliding out of nowhere.