The insert your dad brought back was not used for anything as sinister as executions. It is a 4mm single-shot conversion used for indoor target practice. It used an inexpensive low-powered round that would probably break the skin but wouldn't penetrate to a depth to be lethal (unless a really freaky accident happened, and I certainly would not want to be shot with one!). From your description the unit was almost certainly of the type manufactured by Rheinisch-Westfalische Sprengstoff A.G/Weiss located in Nurnberg. It was used by the Reichswehr for training.
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If it's made after 1918...it's a reproduction
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