Germany sucks as a place for tech startups, but not because of this. Your information is years outdated, the law has long since been adjusted to include digital media under the art and expression exclusions for the use and depiction of Nazi imagery.
How is German law/policy on Valve? You realize that the Unterhaltungssoftware Selbstkontrolle refused to rate Half-Life and Half-Life 2 until changes like changing human blood to green and making enemies robots were made right? So it would stand to reason that Valve would proactively submit a version of TF2 that incorporated the required changes they’d been forced to make for the German market in the past.
They couldn't have Nazis in Wolfenstein because Germany didn't allow Nazi symbolism in videogames regardless of context before 2018. Since then you are allowed to use Nazi symbols as long as it's clear Nazis are the bad guys.