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Its the return to base phase of the axis turn and Germany has 2 transports and several cruisers in the Baltic sea zone. No other axis ships at sea except Italian conveys in the Med. The advance phase button is grayed out and the Baltic fleet doesn't respond when I try and move it. I can't move them at all.

Did you try save and reload? Or possibly an Italian CP that should be on sentry but isn't - and you used the flags at the top to get to Germany. In which case switch back to Italy and see if there's something that needs to return.