[wdqdq]

is there a way to avoid PR and can they legitimately ask for it?

Amazon will remain adamant with their request for a PR, hence the claim will not move forward until the report Is filed.

If there is a DNA then it is their issue right? I do not have to go through the pain for Amazon's mistake right?

It's not about who's at fault.

Where applicable, It's company protocol to obtain a PR.

and SEing an iphone does come with risk of going through the pain of obtaining a PR and maybe it might fail.

What do you recommend I should do?

Just file it online at the berlin police office, you can select other districts or unknown location there as well. There's less than 0% chance they'll ever follow up on it.