I have read them both, and I can't see how the Wikipedia supports your observation.
This is the paragraph immediately above the Nuremberg Laws:
OK it's not gassing people in their millions but it is a racially motivated Law passed by the new German government dominated by Hitler after the passing of the Enabling Act . The Trades Unions are abolished in May, all other political parties in July, Germany leaves the League of Nations in October and a one party election gives the NSDAP 92% of vote in November 1933.On April 1, 1933, the Nazi boycott of Jewish businesses was observed throughout Germany. Only six days later, the Law for the Restoration of the Professional Civil Service was passed, banning Jews from government jobs. It is notable that the proponents of this law, and the several thousand more that were to follow, most frequently explained them as necessary to prevent the infiltration of damaging, "alien-type" (Artfremd) hereditary traits into the German national or racial community (Volksgemeinschaft). These laws meant that Jews were now indirectly and directly dissuaded or banned from privileged and superior positions reserved for “Aryan Germans”. From then on, Jews were forced to work at more menial positions, becoming second-class citizens or to the point they were "illegally residing" in Nazi Germany.
The State governments are abolished in January 1934, Himmler becomes Chief of the Gestapo in April, Roehm and 70 other SA leaders are executed without trial in June, and Hindenburg dies in August allowing Hitler to meld Chancellor and President into Fuehrer. The Fuehrer then requires all members of the armed forces to swear a personal oath of loyalty to him. In September the Nuremburg Rally is convened and Triumph of the Will is filmed and Gunter Lutjens is given command of the Karlsruhe on a prestigious "flag-waving" cruise to various parts of the world. It is a promotion of the New Germany to counteract the negative press generated by the afore-mentioned events. As such it is a highly political appointment. Gunter Lutjens gets the job.
According to the Canadian accounts, the Fuehrer's portrait is given the Nazi salute upon entry to the Wardroom, and all Officers (including the Captain?) give the Nazi salute even when the British National anthem is played at events ashore.
Who would make policy in the Karlsruhe except its Commander?
All the best
All this is placing a supposition and literal interpretation of events which would require 100% perfect knowledge on the part of the officers and crew of this ship to endorse and actively support such policies. I repeat, until 1935 the anti-semitic pogroms were principally party led rather than state led, the party as you observed controlling the legislature.
Most of the men on the ship wouldn't know the fine detail of everything going on back home. Yes the ship was used for propaganda purposes. But I would suggest that the Canadian accounts require verification, as for one thing the nazi salute only became compulsory in the KM in August 1944, following on from the Bomb Plot on Hitler.