If it's a story about a pet cat (as 'pussy' can refer to a cat), it's quite normal for friends to like an interesting story. Pets often make for great storytelling topics.
If it's an appropriate and positive story, you could continue sharing similar positive experiences with them. But if it makes you uncomfortable, it's okay to let them know that you don't want to talk about it anymore.
A family - friendly alternative could be 'Wife showed boy her beautiful garden story'. In this story, the wife can take the boy on a tour of her lovely garden, showing him all the colorful flowers, the cute little birds that come to visit, and the interesting insects that live there.
Sure. There might be a story of a hairy woman who is an amazing athlete. Her hairiness doesn't hold her back but rather becomes part of her identity as she competes and wins in various sports events, showing that one's physical appearance, including being hairy, doesn't define one's abilities.
We could also make it 'wife showed boy her skills in cooking story'. The wife can take the boy to the kitchen, show him different ingredients, teach him how to measure and mix them, and let him watch as she prepares a delicious meal. This way, it becomes a story about learning a useful life skill.
The hairiness of the toe is part of what makes it scary. It's not a normal, clean - looking toe. It's this hairy, unknown thing that gives an icky feeling.