The fact is in the 1930s, the Nazis had considerable sway in Hollywood (a familiar theme in Hollywood that goes on today), they heavily influenced Hollywoods portrayal of the Nazis up until WWII...and their tone towards Hitler only changed when he invaded their beloved Soviet Union.
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you’re conflating the nazis with the communists. The nazis and the communists were bitter enemies. They fought street battles in germany during the 20’s. Hollywood was 100% communist. No nazis. They only turned rabidly against the nazis when hitler betrayed his non aggression pact with stalin and invaded Russia in 1941-42.
The German consul in Los Angeles, Georg Gyssling, was the point man for most of this, letting studios know when something might not be well received in Germany. Some studios would even let him screen films and suggest cuts.
Of course, once WWII began in Europe, the studios' attitude changed completely.