Hi and welcome to the forum,
Your Luger grip inlay is what collectors call "Trench art". It is a modification to the grip done by mostlikely an American GI who captured the piece and wanted to make it look "pretty".
These things, IMHO, add a certain character to an otherwise common piece, but they do also drive down the value.
There were no, ninguno, nada, zip, zero inlayed grips that were done by any German government source for anyone, officer, enlisted or party official.
Tom A.
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