In fact, if anything, the Pope at the time mostly agreed with Luther, and ignored the whole thing as a "monkish quarrel." "No big deal," thought the Pope. "Of course indulgence peddling is wrong. Just send the money." He never saw the obvious. Of course the Romans were incredibly corrupt, and had more rackets going than Al Capone, but what really got the ball rolling on the Luther Reformation was that local princes were tired of paying off the church and as the dispute developed, were quick to jump on the bandwagon.
In modern times the Vatican has pretty much thrown in the towel and said, "All right already, Fr. Luther was right about Grace, Indulgences, etc. We were really bad boys back then. Can't we all just get along now? Forget the money!" So there has been a little bit of a rapprochement. Some married Lutheran pastors have even become married Catholic pastors.
In general, IMNVHO, Fr. Luther was not as Protestant as a lot of Protestants may wish. For example, he had a life-long devotion to the Virgin Mary. But he did get more Protestant as time went by. But even at his best, he was no Knox or Calvin.
When problems with TODAY's Catholicism appear in these thread; "No Big Deal" seems to be the SOP for apologetics.
One would NEVER get this by reading what our FR Catholics type!