If we are talking about Plan Z as actually conceived in 1938, then it was planned to be mostly in place before a war that was expected to start in the late 1940's (1948 I believe was originally considered a likely start point), not something that was being done during a war. Hitler assured the Kriegsmarine that they had a decade, and that was what Plan Z took into account. Those ships should, according to the plan, have been built and in service before Hitler launched any invasions. In that case there is no need to think about an armistice after Dunkirk or French or Russian interventions, because there wouldn't have been the war in 1939 unless either the WAllies or Russia started it. Similarly, only in the later years of WWII would being involved in Plan Z have been a way of avoiding the Eastern Front, when the plan was first formulated it would have been just another part of the German rearmament; keeping the plan going once war had started would have been a way of looking busy, but it wasn't why Plan Z was created in the first place. By then the plan, fanciful as it was in the 1938, was simply impossible. It is doubtful if Germany could have found the resources of men and material before the war started, let alone once it had and they were fighting on 2 fronts. The fact that the war started in 1939, when the plan had barely even been put together, meant that it remained a paper exercise.
If the plan had been given the time to come to fruition then it could not have been kept secret and the signatories of the Washington Naval Treaty would have been alarmed and started to increase their building of modern vessels, but they would have been playing catch up slightly. The Royal Navy would have still had the edge in most classes of vessel, and more importantly the experience. German crews, even given much of the decade Hitler had promised, would not have been able to draw on the experiences that the RN or French could.