No, it cannot, that’s explicitly not what legitimate interest is about. If that’s the way it’s playing out in Germany then that’s sad, but that’s a problem with the national regulator. Other regulators are dropping the ball on enforcement so it doesn’t surprise me, but that is expressly not legitimate interest.
Legitimate interest is things like a legal requirement to maintain PII because of the services offered.
Legitimate interest is things like a legal requirement to maintain PII because of the services offered.