Heise is generally one of the most reliable tech source news outlets in German. (E.g. Netzpolitik.org
And yes,this has been reported on various other news outlets as well
Sadly this is actually not the main issue with that law - the use of KI and population data is far more problematic and overstepping boundaries. The installation of the remote logging software ("govermental trojan") was already possible before, but not by the state,only by the federal criminal investigation office (BKA) and it still has pretty high boundaries (a judge needs to approve,approval is fairly limited in it's timespan, there are limits what crimes it can be used for and how data can be used) While I am not happy about it either, personally I must admit I have far less problems with it than with the other parts of the law. Observation on high risk people has always been part of police work and tbh, it needs to be done if you want to tackle organized crime, violent extremists, etc. Back in the 90ies they tapped the phone of the Mafia associates, now communications have shifted so from my point of view it's acceptable IF "imminent danger" is not routinely assumed regularly (that reduces the limits) and the judges look at it critically - which at least some of them do. And: It's far far better than the alternative that is being pushed: Backdoors in all chats - as pushed by some EU countries on a EU scale. Far worse.
The AI, automatic number plate scanning,face recognition, etc. part of that law is the issue.
If you speak German: Page 25 ff. https://www.parlament-berlin.de/ados/19/IIIPlen/vorgang/d19-2553.pdf