From historical perspective, it makes little sense that the castle would be located in Germany, since the prologue takes place in 1944. The Nazis are clearly trying to flee ahead of the impending Allied advance, yet their positions within the borders of the Fatherland wouldn't be properly threatened at that stage of the war - the Allies didn't enter Germany proper until 1945. While I could buy a German castle being threatened by Allied bombing runs in 1944, there's no way they would send paratroopers anywhere that far in the given year. To me, everything given in the movie points towards the action taking place in France with the Allies about wrap up Operation Dragoon.
But, of course, it's fiction that has played fast and loose with history before. And I feel compelled to point out that Indy spouts out one rather anachronistic line during the opening - "Berlin is in ruins, the Fuhrer's in hiding - you lost." This is something that, again, wasn't really true until 1945. (Of course, in the big picture Germany wasn't anywhere near winning the war after the summer of 1944 - their goose was pretty much cooked by then and all they could do was delay the inevitable.)
Now, one thing I wouldn't pay too much attention to is the title of a track on a soundtrack - anything not given in the movie proper (or other sources that approach matters from in-universe canon perspective) could be written off as a clerical error.