Dear @Amnion,
Welcome to the Wefugees Community and thank you for reaching out to us.
It sounds as if the immigration offices are threatening to issue a so-called "Duldung light" - a Duldung for persons of unclear identity (according to section §60b Residence Act). With such a Duldung, you are not allowed to work anymore. You are saying that you tried your best to get a passport. This is what you also have to prove to the authorities.
Handbook Germany is providing very helpful information on this topic. They state:
In principle, people with "unclear identity" are obliged to obtain a passport and are expected to do all they can to do so, but within what is feasible. Generally speaking, for obtaining a passport, the following steps are considered feasible:
- Visiting the embassy in person as well as the submission of fingerprints or other identification measures (e.g., photos, measurements).
- Submitting a declaration of willingness ("Freiwilligkeitserklärung"). A declaration of willingness states that you are willing to return to your home country voluntarily if necessary. Many countries require this declaration before they can issue you with ID papers (from your home country). You have to sign the declaration in the embassy of your country.
- Attending hearings.
- Communication of all facts and evidence that are necessary to clarify your identity.
- You have to make a declaration in which you confirm your general readiness to do military service in your country. You do not have to declare that you have done your military service.
- Payment of passport fees and other costs.
- Obtaining documents such as a birth certificate from contact persons in your home country.
Please note: If the authorities require you to do something that you find unreasonable, e.g., because you have a well-founded fear of visiting the embassy, or you cannot make a declaration about military service, you should contact a counselling centre.
If the authorities so require and a different outcome is likely in the future, you must repeat the above actions in order to obtain a passport.
Some brief information about the Hardship Commission (since you mentioned that you received relevant papers):
If you want to have good realistic chances, you need to prove that you are well-integrated in Germany. I compiled some information in this thread, for instance.
I hope this helps and please don't hesitate to get back to us with any further questions.
All the best,
Meike