John 7:40 Many of the people therefore, when they heard this saying, said, Of a truth this is the Prophet.

41 Others said, This is the Christ. But some said, Shall Christ come out of Galilee?

42 Hath not the scripture said, That Christ cometh of the seed of David, and out of the town of Bethlehem, where David was?

43 So there was a division among the people because of him.

 

This portion of scripture above comes from a longer portion posted below. People were undecided about who Jesus was. Part of the problem was that they had incomplete knowledge.

They knew Jesus lived in Galilee. And they asked a valid question. They knew the prophecies.

John 7:42 Hath not the scripture said, That Christ cometh of the seed of David, and out of the town of Bethlehem, where David was?

 

The fact is, Christ was of the seed of David. This is evident in the genealogies that Matthew and Luke wrote after they came to know Jesus either personally or through those who walked with him and could tell the historical story that was written down in the gospels. But the gospels (Matthew, Mark, Luke, and John) were not written until after Jesus’s resurrection from the dead, so the genealogy was not written at the time  when people questioned both Jesus’s lineage and birthplace. As to the second part of the question recorded in John 7:42, Jesus was  born in Bethlehem.  But to escape being murdered by jealous King Herod, Joseph took Mary and Jesus to Egypt until Joseph was instructed that it was safe to return.  (Recorded in Matthew chapters 1 & 2, posted below)

By the time of Jesus’s trial the high priest had some kind of awareness because he called Jesus “the son of the Blessed“.   [emphasis mine]

Mark 14:61 But he held his peace, and answered nothing. Again the high priest asked him, and said unto him, Art thou the Christ, the Son of the Blessed?

Luke 1:46 And Mary said, My soul doth magnify the Lord,

47 And my spirit hath rejoiced in God my Saviour.

48 For he hath regarded the low estate of his handmaiden: for, behold, from henceforth all generations shall call me blessed.

 

So the questions about “seed of David” and “Bethlehem” were correct. But because of incomplete knowledge, they rejected Jesus as the Christ. Jesus actually fulfilled both of the questions they were asking, but they did not know it.

John 7:1 After these things Jesus walked in Galilee: for he would not walk in Jewry, because the Jews sought to kill him.

2 Now the Jew’s feast of tabernacles was at hand.

3 His brethren therefore said unto him, Depart hence, and go into Judaea, that thy disciples also may see the works that thou doest.

4 For there is no man that doeth any thing in secret, and he himself seeketh to be known openly. If thou do these things, shew thyself to the world.

5 For neither did his brethren believe in him.

6 Then Jesus said unto them, My time is not yet come: but your time is alway ready.

7 The world cannot hate you; but me it hateth, because I testify of it, that the works thereof are evil.

8 Go ye up unto this feast: I go not up yet unto this feast: for my time is not yet full come.

9 When he had said these words unto them, he abode still in Galilee.

10 But when his brethren were gone up, then went he also up unto the feast, not openly, but as it were in secret.

11 Then the Jews sought him at the feast, and said, Where is he?

12 And there was much murmuring among the people concerning him: for some said, He is a good man: others said, Nay; but he deceiveth the people.

13 Howbeit no man spake openly of him for fear of the Jews.

14 Now about the midst of the feast Jesus went up into the temple, and taught.

15 And the Jews marvelled, saying, How knoweth this man letters, having never learned?

16 Jesus answered them, and said, My doctrine is not mine, but his that sent me.

17 If any man will do his will, he shall know of the doctrine, whether it be of God, or whether I speak of myself.

18 He that speaketh of himself seeketh his own glory: but he that seeketh his glory that sent him, the same is true, and no unrighteousness is in him.

19 Did not Moses give you the law, and yet none of you keepeth the law? Why go ye about to kill me?

20 The people answered and said, Thou hast a devil: who goeth about to kill thee?

21 Jesus answered and said unto them, I have done one work, and ye all marvel.

22 Moses therefore gave unto you circumcision; (not because it is of Moses, but of the fathers;) and ye on the sabbath day circumcise a man.

23 If a man on the sabbath day receive circumcision, that the law of Moses should not be broken; are ye angry at me, because I have made a man every whit whole on the sabbath day?

24 Judge not according to the appearance, but judge righteous judgment.

25 Then said some of them of Jerusalem, Is not this he, whom they seek to kill?

26 But, lo, he speaketh boldly, and they say nothing unto him. Do the rulers know indeed that this is the very Christ?

27 Howbeit we know this man whence he is: but when Christ cometh, no man knoweth whence he is.

28 Then cried Jesus in the temple as he taught, saying, Ye both know me, and ye know whence I am: and I am not come of myself, but he that sent me is true, whom ye know not.

29 But I know him: for I am from him, and he hath sent me.

30 Then they sought to take him: but no man laid hands on him, because his hour was not yet come.

31 And many of the people believed on him, and said, When Christ cometh, will he do more miracles than these which this man hath done?

32 The Pharisees heard that the people murmured such things concerning him; and the Pharisees and the chief priests sent officers to take him.

33 Then said Jesus unto them, Yet a little while am I with you, and then I go unto him that sent me.

34 Ye shall seek me, and shall not find me: and where I am, thither ye cannot come.

35 Then said the Jews among themselves, Whither will he go, that we shall not find him? will he go unto the dispersed among the Gentiles, and teach the Gentiles?

36 What manner of saying is this that he said, Ye shall seek me, and shall not find me: and where I am, thither ye cannot come?

37 In the last day, that great day of the feast, Jesus stood and cried, saying, If any man thirst, let him come unto me, and drink.

38 He that believeth on me, as the scripture hath said, out of his belly shall flow rivers of living water.

39 (But this spake he of the Spirit, which they that believe on him should receive: for the Holy Ghost was not yet given; because that Jesus was not yet glorified.)

Matthew 1:1 The book of the generation of Jesus Christ, the son of David, the son of Abraham.

2 Abraham begat Isaac; and Isaac begat Jacob; and Jacob begat Judas and his brethren;

3 And Judas begat Phares and Zara of Thamar; and Phares begat Esrom; and Esrom begat Aram;

4 And Aram begat Aminadab; and Aminadab begat Naasson; and Naasson begat Salmon;

5 And Salmon begat Booz of Rachab; and Booz begat Obed of Ruth; and Obed begat Jesse;

6 And Jesse begat David the king; and David the king begat Solomon of her that had been the wife of Urias;

7 And Solomon begat Roboam; and Roboam begat Abia; and Abia begat Asa;

8 And Asa begat Josaphat; and Josaphat begat Joram; and Joram begat Ozias;

9 And Ozias begat Joatham; and Joatham begat Achaz; and Achaz begat Ezekias;

10 And Ezekias begat Manasses; and Manasses begat Amon; and Amon begat Josias;

11 And Josias begat Jechonias and his brethren, about the time they were carried away to Babylon:

12 And after they were brought to Babylon, Jechonias begat Salathiel; and Salathiel begat Zorobabel;

13 And Zorobabel begat Abiud; and Abiud begat Eliakim; and Eliakim begat Azor;

14 And Azor begat Sadoc; and Sadoc begat Achim; and Achim begat Eliud;

15 And Eliud begat Eleazar; and Eleazar begat Matthan; and Matthan begat Jacob;

16 And Jacob begat Joseph the husband of Mary, of whom was born Jesus, who is called Christ.

17 So all the generations from Abraham to David are fourteen generations; and from David until the carrying away into Babylon are fourteen generations; and from the carrying away into Babylon unto Christ are fourteen generations.

18 Now the birth of Jesus Christ was on this wise: When as his mother Mary was espoused to Joseph, before they came together, she was found with child of the Holy Ghost.

19 Then Joseph her husband, being a just man, and not willing to make her a public example, was minded to put her away privily.

20 But while he thought on these things, behold, the angel of the Lord appeared unto him in a dream, saying, Joseph, thou son of David, fear not to take unto thee Mary thy wife: for that which is conceived in her is of the Holy Ghost.

21 And she shall bring forth a son, and thou shalt call his name Jesus: for he shall save his people from their sins.

22 Now all this was done, that it might be fulfilled which was spoken of the Lord by the prophet, saying,

23 Behold, a virgin shall be with child, and shall bring forth a son, and they shall call his name Emmanuel, which being interpreted is, God with us.

24 Then Joseph being raised from sleep did as the angel of the Lord had bidden him, and took unto him his wife:

25 And knew her not till she had brought forth her firstborn son: and he called his name Jesus.

40 Many of the people therefore, when they heard this saying, said, Of a truth this is the Prophet.

41 Others said, This is the Christ. But some said, Shall Christ come out of Galilee?

42 Hath not the scripture said, That Christ cometh of the seed of David, and out of the town of Bethlehem, where David was?

43 So there was a division among the people because of him.

 

Matthew 2:1 Now when Jesus was born in Bethlehem of Judaea in the days of Herod the king, behold, there came wise men from the east to Jerusalem,

2 Saying, Where is he that is born King of the Jews? for we have seen his star in the east, and are come to worship him.

3 When Herod the king had heard these things, he was troubled, and all Jerusalem with him.

4 And when he had gathered all the chief priests and scribes of the people together, he demanded of them where Christ should be born.

5 And they said unto him, In Bethlehem of Judaea: for thus it is written by the prophet,

6 And thou Bethlehem, in the land of Juda, art not the least among the princes of Juda: for out of thee shall come a Governor, that shall rule my people Israel.

7 Then Herod, when he had privily called the wise men, enquired of them diligently what time the star appeared.

8 And he sent them to Bethlehem, and said, Go and search diligently for the young child; and when ye have found him, bring me word again, that I may come and worship him also.

9 When they had heard the king, they departed; and, lo, the star, which they saw in the east, went before them, till it came and stood over where the young child was.

10 When they saw the star, they rejoiced with exceeding great joy.

11 And when they were come into the house, they saw the young child with Mary his mother, and fell down, and worshipped him: and when they had opened their treasures, they presented unto him gifts; gold, and frankincense and myrrh.

12 And being warned of God in a dream that they should not return to Herod, they departed into their own country another way.

13 And when they were departed, behold, the angel of the Lord appeareth to Joseph in a dream, saying, Arise, and take the young child and his mother, and flee into Egypt, and be thou there until I bring thee word: for Herod will seek the young child to destroy him.

14 When he arose, he took the young child and his mother by night, and departed into Egypt:

15 And was there until the death of Herod: that it might be fulfilled which was spoken of the Lord by the prophet, saying, Out of Egypt have I called my son.

16 Then Herod, when he saw that he was mocked of the wise men, was exceeding wroth, and sent forth, and slew all the children that were in Bethlehem, and in all the coasts thereof, from two years old and under, according to the time which he had diligently inquired of the wise men.

17 Then was fulfilled that which was spoken by Jeremiah the prophet, saying,

18 In Rama was there a voice heard, lamentation, and weeping, and great mourning, Rachel weeping for her children, and would not be comforted, because they are not.

19 But when Herod was dead, behold, an angel of the Lord appeareth in a dream to Joseph in Egypt,

20 Saying, Arise, and take the young child and his mother, and go into the land of Israel: for they are dead which sought the young child’s life.

21 And he arose, and took the young child and his mother, and came into the land of Israel.

22 But when he heard that Archelaus did reign in Judaea in the room of his father Herod, he was afraid to go thither: notwithstanding, being warned of God in a dream, he turned aside into the parts of Galilee:

23 And he came and dwelt in a city called Nazareth: that it might be fulfilled which was spoken by the prophets, He shall be called a Nazarene.