Hitler was his friend, much like Mussolini (depending though, he was an atheist). Hitler was a Catholic. The Pope condoned what happened. This was indeed, if you wanna call it, a second Inquisition. Hitler did to the Jews, what Spain had done earlier to them. So yeah you can call it that. Not stating my opinion about it.
You can increase your power while fighting a menace. I am sure that if the Vatican were faced with a decision to defeat the Nazi's and lose the church or to stay neutral and remain in good standing with Christians, they would do what they thought was "god's will, to make the church strong".
It doesn't seem that the Pope or the Catholic Church have much of a say or role in preventing violent leaders like Hitler from taking over the region militarily. They are supposed to be nonviolent and follow in the foot steps of Jesus, so to fight back violently would be a sin.
I think that the Pope was more concerned about increasing the power of the papacy in Europe than he was about fighting the Nazis and Germany. I think that it is clear that he took a neutral stance in regards to the Nazis to preserve his power as well as the church's.
No, Pope Pius XII did not care more about increasing the power of the papacy than about fighting the menace of Nazi Germany, because he did the best he could to fight Nazi Germany. The church is not a military organization. They can take a stand against an issue, but there are only so many things they can do to stop a dictator.
I think that while papal power expanded under Pope Pius XII I think that he overall used that power specifically for combating Nazi Germany as much as he could, Pope Pius XII used the papal forces against the axis powers and widely was a strategic tool against Nazi Germany, I think he cared deeply about defeating Nazi Germany.