Quite aside from the veracity of the story, I have to question the moral lesson here: Don’t feel guilty about causing a death, because the person “obviously” deserved to die?
It seems to me that even if this story was true, it is better not being told.
Likewise with some of the “Emunah books” now being sold in seforim stores, like “Ein od milvado”, that tell how having really deep emunah helps prevent you from being caught by the police for law violations, but says nothing about observing the law. Very strange lessons to teach, in my opinion, not what one would expect from the people that claim to have taught the world morality.