Hello,
I have a Blue Card and have been working in Munich, Germany almost 4 years (my Blue Card expires in September this year) and as far as I know I meet all requirements to apply for a settlement permit Niederlassungserlaubnis (I have worked in DE for more than 33 months, have A1 German level sertificate etc...).

The problem I have is that my German is not good, it's just good enough to pass A1 level exam, but as this is the most basic level I'm not able to speak German fluently.  So, when I went and applied for Niederlassungserlaubnis with all necessary documentss a month ago, I had a problem to speak in German and I asked the stuff in KVR in Munich if I could speak in English. They agreed till the moment they heard what I want to apply for. Then they started speaking in German and told me that they were going to reject my application unless I speak in German. They started being rude and would not listen to me at all. They also didn't want to take my documents. At the end, after explaining several times how my German is really basic and being really persistent, I hardly managed to get an appointment in September (just 10 days before my Blue Card is about to expire), but they told me they would reject my application unless I don't speak German at the meeting. I'm very concerned about the outcome of this all.

So, my question is who is right? Do I have right for Niederlassungserlaubnis if I speak in English at the appointment? If not and if I have to speak German, then at what level I'm supposed to speak it at the appointment and do they have right to still reject my application on the grounds that my German knowledge is not good enough?
Thank you very much!