In stories passed down between the many wood elf tribes has it the first were-fox was a normal Wood Elf of an unknown tribe. He wished to seek out the one who has stolen his wives, his tools and all his reindeer. He wanted back what was his. The god of the hunt, Malar granted him the abilities of the fox but in return he'd have to give up his mastery of the wilds to relearn how to survive like the fox. Malar sent his trusted silver fox to be his guide, the fox upon arriving savaged the elf infusing him with the energies of Malar. After several months in the wilds he learned the wisdom and the cunning of the beasts of Malar. He learned two things from the fox. The first was how to trick and confuse his foes using the many paths in the pine forest. The other thing he learned was how to escape should he need to disappear.
He eventually found the elf who stole what was his. He changed into a fox he lured him away from his home. The elf saw the fox and thought the pelt would make a great gift for one of his wives and ran into the woods with his club. He lured him out into the forest on a wild hunt turning him around getting him lost. The first time the elf came back from the forest he discovered all of the reindeer he stole were gone and in the bush he saw the red fox he chased earlier disappear into the woods. Angry he chased the fox. Again the fox led him on a wild hunt getting the elf lost. This time the elf came back to see all of his tools missing, again he saw the fox in the bush holding his bow run off into the woods. Again the elf became lost chasing the fox and for a final time returned home. Finding the wives he stole gone and this time he saw the fox in the bush change into the wood elf man he robbed run off into the woods. This time he made a prayer to Thalanil for punishment against the elf for the greater crime of becoming a beast and using his new powers to deceive him. Thalanil answered his prayer and enchanted his oaken club to punish the deceiver. Forever more he chased the fox to get his revenge, never getting close enough to hurt him. There are many variations on this story but this happens to the most popular one to explain the were-foxes weakness to oaken wood blessed into iron wood.
As a were-beast they often feel the pull of their curse that is unique in their circumstances. Often they feel an overwhelming temptation to be conniving and to steal away from others as beset by their curse. Often they feel the need to steal by violent means. Due to their curse they often are found living as hermits or in a small group.
Were-foxes are also known to continue living among the savage tribes of the wood elves. Often they end up as scouts and sages, but due to their nature never end up as leaders. Some tribes have ceremonies around infecting members as new were-fox as part of their worship of Malar.
Its also been known that certain humanoids are affected by the were-fox curse as well. Only Elves and Humans so far have been known to be able to be infected. Infection removing their innate traits typical of their race.