Nazi Egyptology is a complex subject. As Professor Thomas Schneider said, there is no uniform 'Nazi Egyptology' discipline. Instead there are a number of German Egyptologists who were thrown into the academic hole of the Third Reich - who each reacted to it in their own way.
An interesting story that I didn’t put into the article The Real Story of Nazi Egyptology, for brevity reasons, is that of Friedrich Wilhelm von Bissing. Bissing was a professor at Munich. He is perhaps most noted for his work at Abu Ghurab, done at the turn of the century, where he excavated the sun temple of King Niuserre.
Professor Schneider writes that Bissing was a deeply religious man who was “torn between his faith and National Socialism, concerned about the increasing number of repressive actions exerted by the Nazis.”