I doubt very seriously that "late" WWI P 08s had "steel" problems.
All one has to do is look at their subsequent use by the police, and then throughout WWII, and on into post war by the East Germany, and also as souvenirs and shooters, they keep on ticking.
Alvin,
you had bad luck with a hammer, what about the other Red 9. I would be very reluctant to condem all Red 9 to junk status(only made to fire few 100 rounds) because of two failures.
Again these served the police and also in WWII. The several I've owned and fired over the years had no problems-hence I would reach the opposite conclusion.
If one does not accept the OP pistol as a shooter, then it is relegated to an expensive paper weight and has no more value; so please send all such lugers and any Red 9s that are mismatched to me.
All JMHO.