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the invention will probably be found to violate paragraph two of the German Patent Law – which does not allow inventions that transgress public order or good morals

I didn't know German Patent Law worked this way. I wonder if this clause has any actual effect. Is the actual manufacture and use of such inventions also prohibited or does this just mean that nobody in Germany can have a monopoly on such things?

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That paragraph lists exceptions to patentability - inventions that infringe on "public order" or "moral conventions". In particular listed are human cloning, methods to modify the human germline, industrial use of human embryos and modification of animal germlines which cause suffering to the animals without providing any medical benefits for animals or humans. So every invention that can be used to breed a master race is explicitly non-patentable, plus there's a blanket formulation that can be extended to mean "anything the Nazis would have liked to have invented to make their job easier". An implant that poisons you when you don't follow the Führer would arguably fit right in there.

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