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Why was it a travesty? Did he manage to weasel out of getting convicted?
I think the opposite it more likely, given that the assistant is intent on placating “his serene highness”
The last two lines are where this thing falls apart. A German reactionary nobleman (i.e. one who allows himself to be called “serene highness” without irony) would not even assume that someone might be bothered by his great-grandparent having been contractor for Nazis (and most likely, a Nazi party member). He would consider it self-evident that the other speaker considers it an honourable lineage: building a submarine base was a classic example of “non-political” participation in the overall patriotic war effort.
And to be serious about it, a West German corporate manager would require to be a truly monstrous sadist to get prosecuted for war crimes (of the order of Ilsa, the She-Wolf of SS). Usually, they were freed from all suspicion, and even those who were prosecuted, would get out of prison around 1949, and by 1954 at the latest.
Except that Raz isn’t impersonating a German noble.