Not everyone has been a fan since the beggining....
to answer the question, it is no rumor it is a fact, that episode was never aired again in Japan, therefore never aired in the rest of the world.
The only other episode Japan has not aired is an episode about wishcash and earthquakes which some massive one had just happened not to long ago so it didn't and hasn't aired.
In America they banned The Ice Cave and The legend of Dratini as well because of jynx and guns,
New episodes KWB later never reran included more episodes with Jynx and a tentacruel episode were he destroyed buildings (as well as the "towers" episode of Sabrina).
Beauty and the Beach was banned for a while, and then aired very heavily edited and never re-ran again.