The Spandau arsenal did rebarrel / shorten a number of LP08 pistols, but this was done by removing the original LP08-barrel with rear sight and replacing them with a normal 4-inch barrel and a regular rear toggle piece with integrated rear sight.
This looks like a home job to me. I would have it fitted with a replacement long barrel. Artilleries are great to shoot, especially with the stock attached. Since you have the full rear sight blade, that will cut the costs of a replacement quite a bit.
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