https://fullfact.org/online/queen-nazi-salute/
Which is one of the reasons Hitler expected Germany and the UK to come to an accommodation. And why he was surprised - even blindsided - when the UK decided to declare war instead.
One debatable defence is that this was still pre-Holocaust, and outright anti-Semitism hadn't yet devolved into mechanised mass murder and enslaved brutalisation.
So it was possible with some moral gymnastics to justify the Nazis as better than the Bolsheviks, who were considered a far more immediate threat to the British ruling class.
Even so. There's no question there was always an undercurrent of support in high places. And in fact the British mythology of Churchillian resistance is at least as much about a nationalist myth of pushback against Germany as a virile and potent competing empire as about fighting the immoral horrors of Nazi fascism and genocide.