That’s an interesting phenomena, of which I more than passing familiarity. One of the people I was in flight school in the IDF was the grandson of a notorious Nazi.
His parents (who were kids in the War — his father in the Hitler youth) both underwent an Orthodox conversion. He was born a couple decades later in Israel.
Anyway, my friend went to work for the Mossad and became quite famous, in a small way. Wrote a book.
Handy to have a blue-eyed-blond-hair Goyishe Orthodox Jew who spoke flawless Berlin-accented German, in that line of work.