When in the war zone in WW-II, ANY firearm in German hands would have been confiscated.
While part of the history of this 1914 dated Erfurt, I don't think I'd value it any less for having the magazine safety cut. This is a rather rare date for Erfurt. If it's all matching and in original finish, it would be very collectible. It still has the sear safety installed. The magazine safeties were removed from many of these police conversions.
Take fresh pictures showing external markings, including barrel markings, and the internal parts. Get the details from the magazine, which is not WW-I vintage (and probably interwar or WW-II vintage).
You have a great family heirloom. Resist the temptation to shoot it. Many of these century old pistols have broken a numbered part.
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 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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