Not sure if this is indeed exaggerated or unfounded and I hope it is. I heard it was taken off the agenda but that was more of a "for now", with plans to revisit it next year.
My thinking. Not sure how they will translate “right to encryption” into law, but if they mean right to E2E encrypted correspondence, then german law will be on a collision course with EU laws in development. If that happens it will be interesting to compare the debate with what happened with Poland this year.