This was my experience. I lived for almost four years in Berlin, and was trying to learn German (I got to A2, which isn't much). But actually getting experience/immersion in German is difficult in Berlin - everyone under the age of 50 speaks good English and switched to that as soon as my first badly-conjugated sentence left my mouth.
I worked for two German companies while I was there, and the entire tech team in both companies did everything in English. This is normal there. In one of them, the (German) CEO gave a townhall speech to the entire company (~1000 employees) in English.
So yes, it's very understandable for the German government to say "you must be at least B1 to live here" but that doesn't recognise the fact that it is perfectly possible to actually live and work in Berlin with no German at all.
It's different in other German cities, apparently. If we'd moved to Munich or Cologne I would have had more pressure to learn German, and also more exposure to it and more immersion which would have helped learn it.
Did you ask if you can move to a different city and work remotely? Even if only 1-2 years, it might really help to boost your German. Moving to Dresden, Hanover, or Hamburg would help. (German HNers can probably recommend a bunch of small cities 1-2 hours away by train/car from Berlin that will use much more German language!) You could come to the office once a week.
Another tip: Always start the conversation in German. If the person switches to English, ask them politely to speak German, and explain that you are studying German. My parents did similar when they moved to the Netherlands 50 years ago. The local shopkeepers were eager to practice English with my parents, but my parents were also eager to practice their Dutch.
Even when I vacationed in Bayern (Bavaria), a lot of people switched to English when they realized that my German wasn't that good. Which was frustrating, because I wanted to practice speaking with native speakers.
Although, there were also people who only spoke German.