After the war most Germans claimed they had no idea about the holocaust and expressed shock and horror upon learning about it.
The question of how aware the average German was about the holocaust aside, were most Germans just okay with all the harassment, dehumanisation, threats of violence, and other horrible treatment of Jews, but thought outright murder was going too far?
You have a lot of questions bundled up here, so here a number of resources
The FAQ Were people aware of the holocaust during the War has a question or two that talks about your first sentence
I have a question about German anti-semitism written by u/kieslowskifan talks a bit about "regular" German citizens near the middle
How wide-spread was antisemitism among average Germans in the Weimar Republic? written by u/Aleksx000 drives into some statistics, but might be a bit before the time period you are interested in.