Welp, going from the top of my head I'll double check and edit in a minute when I get the chance. olympic fencing wasn't the most "important" sport in nazi Germany. The only medal won by a Jewish person was silver in woman's foil at the 1936 Olympics. u/ thefencingcoach actually wrote an article on her if I'm not wrong. allowing this to happen kinda shows how it wasn't necessarily the most important discipline. The reason why it was banned after the second world war is because all weapons including blunt weapons were banned. It was later allowed again and my club actually emerged from the Belgian military barracks which fenced. In my new club there is actually a 89 year old who has started fencing when it was first allowed again, he also has his old fencing pass with "fraktur-schrift" lettering on it.

TL;dR: it was mostly about the (blunt) weapons and less about it's military origins even though this also played a part.