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[–] 0 pt

A work camp honestly makes the most sense. Germany likely knew that if they massacred the jews, it would cause an unfavorable reaction in multiple countries.

Removing them from German society and putting them into a camp that was forced to assist the war effort would both help Germany and remove a cancer from the country. Win win, at least until jews convinced the rest of the world that Germany, while fighting major wars on two fronts, for some reason decided to stop winning and instead spend massive resources on genociding when they didn't need to.