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Germany at the outbreak of WWII had 21 destroyers.
In 1939 Scenarios Germany starts with just one Patrol Group.
Is this accurately reflecting Germany's naval force regarding the number of destroyers or should the number of Patrol Groups be increased?

Yes. A battle group isn't only the capital ships. It is also escorts.
A patrol group is light cruisers and destroyers.

Here is the German navy in 1939.
Navy 1939
## In build queue
1 BB (launched not commissioned Bismark)
## Shlesien DN group in Konigsberg
2 BB (old 11" guns)
## Scharnhorst naval group
2 BC
## Admiral Hipper naval group
## Deutschland naval group
6 CA (3 had 11" guns called pocket battleships)
## Patrol naval Group
6 CL
17 DD (21 total in docks 17 servicable)
## Submarine naval group (each group = ~25 subs)
57 SS
22 Coastal
## Escorts
11 Aux cruisers
4 troop ships

Some of the DDs and CLs are spread around the other groups.

OK. Thanks for clarifying!