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...I remember when the thing was that almost all WW2 shows would have a line or two of German, then they'd switch to English, the understood convention being that they were still speaking in German, but we could magically understand them. That in a time when audiences were more resistant to subtitling. Not seen this show, though - is there a lot of "foreign" language discussion in it?...
Since it was openly noted early on in the show that the female American spy (not really a spy, but a time-traveling historian with way too much makeup on) didn't speak German, the only logical assumption is that when she was speaking with the British Spy during the Nazi party was that she was speaking in English.
Away from that glaringly stupid thing (no half-trained spy would every do that), as with everything in this show, it is handled sloppily and inconsistently. Sometimes the Germans speak German and sometimes English and we are left to "know" that it's really all in German.
IMHO, either is fine - German with subtitles or English (in the manner you noted) with us assuming it's German, but consistency is key. I personally prefer subtitles for the authenticity and it eliminates audience confusion with bilingual speakers or when both languages are being used in a scene or show.