Krauss and Max Reinhardt worked together for the last time at the 1937 Salzburg Festival, staging Goethe's Faust (with Krauss as Mephistopheles) in the Felsenreitschule theatre, shortly before Reinhardt emigrated to the United States. In 1940, Krauss simultaneously played the roles of six stereotypical Jewish characters – among them Rabbi Loew and Sekretar Levy – in Veit Harlan's antisemitic propaganda film Jud Süß, implementing Harlan's concept of a common Jewish root. When asked by Wolfgang Liebeneiner about the devastating effects of his performance, he replied: "that's no concern of mine – I'm an actor!" Krauss also played Shylock in Lothar Müthel's defamatory production of The Merchant of Venice staged at the Burgtheater in 1943. In 1944, Krauss was added to the "Gottbegnadeten list" of indispensable German artists, which exempted him from military service in the Wehrmacht forces, including service on the home front.