I think that it's likely that the PU-UKW selector position is implying usage of an external VHF converter giving line-level audio out- I believe that quite a few devices of this nature were available. When the set was built, there may still have been debate/uncertainty as to frequency band, modulation method etc. that was to be used.
Besides, there aren't really enough bottles in the set to make UltraKurzWelle work, other by some rather short-cut and poorly-perfoming jiggery pokery!
Edit: The circuit confirms it