Yup, he has dual citizenship through his wife.
My understanding is that rule applies to his kids but not him. If the partner of a German citizen naturalizes they have to give up their previous citizenship unless EU.
https://www.bmi.bund.de/SharedDocs/faqs/EN/topics/migration/staatsang/Doppelte_Staatsangehoerigkeit_Mehrstaatigkeit_en.html
@jellybaby started
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Yup, he has dual citizenship through his wife.