Let $M_d$ is a vector space spanned by the set of all the involutions in the symmetric group $S_d$ (you can treat $M_d$ as a space of function on the set of involutions endowed with standard addition and multiplication by a scalar). Define an operation $\circ\colon M_d\otimes M_d \to M_d$ as an extension by the bilinearity of the following product on the involutions.
Let $a$, $b$ are two involutions. Set $a\circ b = ab$ if $ab$ is an involution (the latter product is a usual product in $S_d$), and $0$ otherwise.
The commutativity of such an operation is straightforward. It can also be checked that such an operation is not associative for $d>2$.
I am wondering, whether $M_d$ endowed with the operation $\circ$ is a Jordan algebra?
Is this a counterexample?
EDIT: Yes. (I have checked it by hand, as the above code is messy.)
In more standard notations: Let us write permutations in $S_4$ in cycle notation. Then, set $x = \left(1,2\right) + \left(2,3\right) - \left(1,4\right)\left(2,3\right)$ and $y = \left(1,4\right)$ in the group algebra of $S_4$. Then, using your "multiplication", $x\circ\left(y\circ\left(x\circ x\right)\right) = -5\left(2,3\right) - 2\left(1,2\right) + 5\left(1,4\right)\left(2,3\right)$, whereas $\left(x\circ y\right)\circ\left(x\circ x\right) = -5\left(2,3\right) + 5\left(1,4\right)\left(2,3\right)$.