The recent gambling legislation set by the Ministerium für Inneres, ländliche Räume, Integration und Gleichstellung with the Gaming Agreement 2021 came into force on July 1st, 2021 in the jurisdiction of Germany. The legislation is in full force since that date.

First of all, it was not the "Ministerium für Inneres..." (they probably mean the Bundesinnenministerium = Federal Ministry of the Interior) which ratified the new gambling law called "Glücksspielstaatsvertrag" but the 16 federal states of Germany. Gambling falls under the legislation of the federal states. The Federal Ministry of the Interior has no legislative competence in this regard.
Secondly, online gambling has always been illegal in Germany. There was just a grey area when it came to prosecution. German authorities tolerated especially EU-based operators from Malta and Gibraltar because the highest court of the EU, the Court of Justice of the European Union (CJEU), chid Germany multiple times for their national gambling law reasoning that it would violate fundamental rights of the EU like the "Freedom of Establishment and Freedom to Provide Services in the European Union". So, what Germany did was just tolerating online gambling but, formally, it has NEVER been legal before July 1. In fact, sports betting and casino was a state monopoly and land based only.
In short, suggesting that online gambling suddenly became illegal in Germany on July 1, 2021 is just wrong. It has always been illegal in this country.
Regarding the Bitcoin <-> Euro thing, I can support what LoyceV said. It's so shady, it makes them even look worse. They know exactly that they "made a mistake" (aka tried to scam) and that they have to pay in order to keep face. But instead of just paying the remaining balance, they are now trying to push down the amount. And on top of that all, they are not even willing (or able?) to pay the balance at once.
The whole story throws such a bad light on Buff.bet and their parent company XB Systems AG.