By all account Adalbert Schnee was no fool and so it is probably reasonable to presume he realized that the end of the war was just days or weeks away and that Germany would be totally defeated with no accommodation with the Western Allies possible.
So, with the end in sight where is the sense in placing your boat and your crew in a situation where they can be amongst the last to die?
Likewise if one wants the Anglo-Americans to help Germany fight the Bolsheviks, torpedoing a major warship on the eve of a probable surrender is unlikely to be an incentive for them to do so.
In my view, by not shooting KK Schnee demonstrated consummate professionalism and a solid grasp of what Germany's situation really was.
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