Why is 德国 the “virtue country”? Here is what I think and how it is named: In Google translate it says it means "virtue country".

My guess is probably wrong but here it is:

China is an alliy of America, and America boosted up the nuke technology and sped up the surrender of the Japanese by Germany. Is it correct, if it is not truth, then how come it was named the virtuous country?
德 is phonetic transcription of Deutsche.

Similarly 法 in 法国 is phonetic transcription of France, not "the country of law".