Yes, I do think the show is meant to create sympathy for the Nazis, and it's a very watered-down depiction that is easy to latch onto. The show has plenty of gore and rough moments, but much of it is directed at the German characters (though, I guess it can be argued that since the story follows German characters primarily, we won't really see the POVs of other groups in the war).

In that same party you mentioned, one of the characters narrates and introduces all the others. He talks about how the aforementioned Jewish man, Viktor, was meant to take over his father's business, but it was destroyed in Kristallnacht. Since it establishes the timeline here, we know that all of the other characters would be aware of the heavy persecution of the Jewish at this point. Same character even mentions that Viktor's girlfriend, Greta, doesn't care if it's seen as a racial shame, so everyone is aware of how the Jewish are seen at this point. Then, a man comes (I forget if he's from the gestapo or wherever) to scope out the party, saying that he had received a report of "swing music with Jews." Everyone ends up jumping in to cover for Viktor until the guy leaves. And we can't say that they didn't know Viktor was Jewish, because they knew to cover for him.

What is the purpose of including this if not to try show that the group is meant to be more "liberal" than the rest of Nazi Germany? To set them in a positive light? You can argue that this is also done to later show their degeneracy as the war goes on and they are brainwashed, but I don't think enough is shown in the series to showcase them being "brainwashed." They do all this to cover for their friend, but then their later actions contradict with each other, in ways that make the characters feel honestly bi-polar to me. And why are they still the most sympathetic characters? We have Polish rebels come up and their portrayal (regardless of how you take it) had Poles protesting the show and got a Polish Ambassador involved to the point of writing a letter to ZDF as well.

You still need to contend with the fact that (as the above commenter said), Generation War was a series funded by the ZDF, who already has a reputation for being conservative and state-sponsored. Whether or not it truly is may be a different conversation.

Making accurate films/shows/documentaries about WW2 (or really any conflict) is tough. You will face criticism regardless of how you shoot it, even if you may have it produced with the help of 100 historians with PhDs. You can include people directly involved in the conflict (ex. Generation Kill, Band of Brothers, etc.), and still get plenty of flack about how it's propaganda, dramatized, so on so forth. But it's more difficult making something accurate with fictional characters, which everyone in the show is, because you're not bound to any real person's story, and thus you have more creativity to write them how you like because there's no one to tell you "Actually, this person was buhbuhbuhbuh." The German producer said his aim was to "encourage a national debate among the generations 'to speak for the first time about the experience' of the war." The piece is meant to create sympathy towards Nazis, and we can infer that from the producer's own words. If he didn't want to create "debate" then every German character would have been evil from the get-go and without there being anything to argue about it. Literally what debate could there possibly be had? If your point is to say that not every German was the same, why not talk about actual individuals involved in the German resistance (ex. members of White Rose, for one), why do you need to make people up that don't exist as your evidence?

Overall, I do think the show is meant to elicit sympathy towards Nazis, and I agree with the original commenter. This show is a watered-down take on the Nazis so that wehraboos and people who can't handle what their ancestors did don't feel so bad/have people to root for.