So, I faced similar issues when I was trying to make it work with Spanish and stuff like that. I think it's not an issue with VAPI—it's just an issue with the model, the transcriber, and the voice you are using. And that's the funny part: you just have to try.
You just have to go into your VAPI dashboard, try different model, transcriber, and voice to see what's the best for German. It's just like a play game—this is not really a VAPI issue.
For the model, I would suggest using GPT-4-1 mini because it has cheap as 4o and it's also really quick.
For the transcriber, you should try Google Flash 2.0. It's really good. (I was impressed)-i think, you just have to say mutlilingual or some stuff like that
For the voice, make sure that you go into Eleven Lab and try and find a voice that works with German,? Don't forget that you also have the possibility to add custom voices. You could also go into Eleven Lab, find a really good voice for German, and then add your API key, and then you will have something that sounds even more natural.
The Tl;DR is that you have to try out. This is not really a VAPI issue, I think (let me know if you are able to solve it).