It's more like some guy managed to get the German army to fund his pet project. A huge herd of white Lipizzaners would have been militarily Cool, but Ineffective. That's a parade unit, not a fighting force.

After the war, the Lipizzaners, both this group and the ones at the Spanish Riding School in Vienna, were rescued by US forces under Patton, who was a cavalryman before his tanker days.

A good horse is never the wrong color.