Welcome to the Wefugees Community and thank you for sharing your situation with us.
I am sorry to hear that you feel yourself stuck in limbo and you are so tired now. It seems also that the communication and cooperation between you and your lawyer was not the best. Did you consider to apply for a residence permit for the "Ausübung der Personensorge" - to take care of your child? We discussed this topic already a few times on this platform and you may go through the information here and also check the answers in this thread. For having a chance to get this residence permit granted (the issuing will be at the immigration office's discretion), the recognition of the paternity, the shared custody, and actually taking care of the child will be essential.
Regarding your voluntary return to Italy - I assume that you are not an Italian citizen right? Otherwise, you would have the right to live and work in Germany as EU citizen anyway. If you just came via Italy to Germany, I am afraid that the authorities will not support a departure to Italy unless you have a valid Italian residence permit. Or was your case a Dublin case and you are obliged to go through the asylum procedure in Italy?
As your case seems to be quite complex, I would recommend you to seek support in a local counselling offices as well. I am sure they can also help in the communication with your lawyer and keep an eye on the process.
Please let us know if you need help in finding respective services in your area and also don't hesitate to get back to us with any further questions.
All the best,