To be fair there are, in my opinion, significant inaccuracies in the German system posted here. Not least of all the fact that Schweinsteiger and Khedira are on the wrong sides.
There are also significant weaknesses in how the system is translated into FM via the TC, because FM and especially the TC lack the maturity to adequately define and produce certain behaviours.
For a start it is not possible to replicate the formation shown in the German screenshot in FM because actual DM's sitting in DM positions have no RFD instructions whatsoever. Either the players start in midfield positions with reduced mentality or they have no RFD. And again the only CM positions with RFD are the higher mentality positions, therefore your options in FM via the TC to attempt to simulate the German midfield is either deep positioning with no movement, or advanced positioning with movement and this requires that the players start from CM positions and not DM positions.
That's not a flaw of the diagram posted here, but it is a flaw in both the instructions posted here in comparison to the diagram, and a fundamental flaw in the TC itself.
The second significant issue is the function of the Wide Attacking players. The description of the German system here has the German wide players as Winger Attack. The non-obvious effect of this instruction is that the German Wide Players will regularly get ahead of the Oezil Advanced Playmaker role through a combination of higher Mentality and more RFD instructions which is the complete opposite of the function of the Oezil role. The German widemen are tasked with a high Mentality position, RFD Often, Hug Touchline, RWB Often and Cross Ball Often. This is significantly different from their actual ingame function of making runs from an actually deep position, involving themselves in wide build-up play, and then attacking the box as the defence is overloaded. The error here is that their role in overloading the flanks with pass-and-move and a final ball into an overloaded centre after overloading and removing the wide defenders from play has been interpreted as advanced, aggressive and direct wingplay. A subtle issue but an important one.
Perhaps the most fundamental error in the entire explanation of the system is the function and role of Oezil. If Oezil ever operates as a playmaker he does so from the byline after having split the defenders channels and looking for overloading runners from deep. Oezil most certainly does not function as a playmaker behind the German wingers, and the German widemen most certainly do not spend the entire match in positions more advanced than Oezil. The entire premise of the German system is the precise opposite, with Oezil ripping past the German widemen, carrying markers with him or driving unmarked into channel positions that are entireally ripe for a throughball precisely because the German widemen are waiting and watching for his run. The attacking runs of Oezil beyond the German widemen and beyond Klose into the channels is the absolutely fundamental premise of the German system.
If the Creative Freedom and Mentality of Oezil defining his starting position in the team before a run is correct, then every single other detail regarding Oezil and the rest of the German system in detail is completely wrong. It is the runs of Oezil from deep in conjuction to the overlapping runs of the German Fullbacks that completely destroys the opponents flanks and produces the consistent overloading of the opponents Central Defenders. Oezil and Lahm race past Mueller at exactly the same time, ripping the opposing Fullback to shreds, forcing the near side Centreback across to deal with the threat, leaving Klose and Podolski on either side of the remaining Centreback for a tap in. Or in Podolski's case a 130 mph howitzer unmarked from 10 yards out into the bottom corner.
Indeed it should also be pointed out that the German midfielders, Schweinsteiger and Khedira, are employed in offensive roles intended precisely to maximise this overloading of the flank areas. It is the job of these players to advance up whichever flank is being targetted in order to offer a fourth passing option to the combination of Widemen + Fullback + Oezil ripping open the channels. It is the combination of Fullback + Wide Man + RFD DM + Oezil that is intended precisely to overload the flanks, miss out the "defence-in-depth-of-the-centre" completely, pull a Centreback across and therefore leave the Centre Forward + Opposite Side Wide Man + Direct Runners From Deep on the Attacking Side once flank overload has been achieved to outnumber the Centre of the remaining defenders.
The entire premise is simple and potent. Push the ball wide, hold it up. Whatever side the ball is on then the players on that side get forward, the AMC gets forward on that side, the ball carrier plays a pass into the overloaded fullback zone and the rest get into the box for the delivery. This cannot occur in the formation described at the start of this thread.
The next question regards Klose. Klose has played two distinct roles as I can tell from this World Cup.
The first role Klose has played is as the genuine Centreforward that holds positions, pins Centrebacks and as the overloading flank play develops finds himself with an easy near post finish. The second role Klose has played, most clearly in the match against England, is the role of pulling either deep or pulling extremely wide to pull defenders completely out of position and allow runners from deep to gut the completely AWOL centre of defence in huge numbers after Klose plays a simple pass.
Klose does not "move into channels" at all. His job is A: to stick completely in the middle as a genuine targetman, or B: to drop incredibly deep/move right to the touchline. Both of these roles facilitate the removal of Centrebacks from the game, but do so in different ways. The rest of the team tends to play exactly the same, but depending upon the precise nature and quality of the opponents Centre of Defence, Klose will carry out one of these two key roles.
So in short the Germant diagram posted here looks nice, looks reasonably accurate in terms of shape and positioning, but in terms of detail it is my opinion that not only are individual roles inaccurate, but the entire concept of the system is flawed. And that is before the problems of translation to the TC.