Fortunately Germans and their descendents are fairly well-off, otherwise we'd have to come up with an alternative word for jerrycan that doesn't contain an ethnic slur.
I can't speak for the world, but in my experience descendants of Jews are fairly well-off and there's quite a few slang words people don't use anymore.
If you peel things back a layer, it's all about someone being made "other." This is why some people in 2021 who tell themselves they are standing against racism read just like the racists who bashed me when I was young: They are the ones self-righteously justified in demoting someone from full human status. Yes, racists often convince themselves they are making the world a better place! It's that aspect that's key!
One doesn't fight othering by targeting a fellow human being as "other." One doesn't fight hate by promulgating more hate. The right side of history is about empathy, compassion, and convincing. The wrong side tries to disguise the opposite of the above as compassion.
Full disclosure, though, I like Sauerkraut a lot, which might play into it.
I've always been a little conflicted by kraut though, e.g. when talking about Krautrock so I'm glad it's mostly seen as humorous[1].
Personally, I find the terms limey or rosbif as terms for us Brits quite funny too for similar reasons.
Growing up I've had Irish people apologise to me for others calling me a "Brit".
This was doubly funny to me at the time as both my friend and "insulter" both really thought of it as a pretty bad insult.
Still makes me smile today, I mean it's what we call ourselves. :D