On the issue of whether “יעקב אבינו לא מת” is literal or not. I think it pays to clarify what Rav Yochanan was referring to when he said יעקב אבינו לא מת. The posuk, in describing Yakov Avinu’s death writes: “וַיִּגְוַ֖ע וַיֵּאָ֥סֶף אֶל־עַמָּֽיו” This means his soul left his body and was gathered onto his nation (i.e. went to Gan Eden). But when describing the deaths of Avraham and Yitzchak the posuk adds in the term “וַיָּ֧מָת.” For example by Avraham the Torah says: וַיִּגְוַ֨ע וַיָּ֧מָת אַבְרָהָ֛ם בְּשֵׂיבָ֥ה טוֹבָ֖ה זָקֵ֣ן וְשָׂבֵ֑עַ וַיֵּאָ֖סֶף אֶל־עַמָּֽיו׃.
The addition of the word וַיָּ֧מָת implies that it has a particular meaning, an aspect of death that is not captured in וַיִּגְוַ֖ע וַיֵּאָ֥סֶף אֶל־עַמָּֽיו. Because this word is not present by the death of Yakov Avinu, R’Yochanan says יעקב אבינו לא מת. Rav Nachman is confused and asks that Yakov was embalmed, buried and eulogized, how can R’Yochanan say he wasn’t dead. To which the Gemara answers that R’Yochanan is making a drasha, Yakov Avinu is compared to the Jewish people and just like the Jewish people are still alive, Yakov Avinu is still alive. (מה זרעו בחיים אף הוא בחיים).
You can understand this simply to mean that Yakov Avinu lives on in name so long that his children live on and therefore he cannot truly die because the bnei Yakov (referred to as bnei Yakov or bnei Yisroel) are still alive and will remain alive. Rashi, however, takes a more literal approach and understands Yakov Avinu to be in a quasi-death state (suspended animation) and he will be revived for the final geulah to see his children redeemed.
But under both understandings, Yakov Avinu appeared dead to everyone around him. His body was indistinguishable from a dead body to the embalmers and the eulogizers. But there was one aspect of death that he never suffered.