This could only happen if Vargas was crazy enough to side with the Germans--something extremely unlikely to happen despite the right-wing authoritarian character of the Estado Novo. (To the extent it had any ideological source in Europe it was closer to Salazar's Portugal than to Germany or even Italy).
Now, if the Integralists had gained control of Brazil, that would be another story... https://www.alternatehistory.com/forum/threads/integralist-brazil.314876/#post-9093839 But as it is, I think we're just talking about one of the countless contingency plans that had no real chance of being implemented.
Many very very conceitued historians consider the Brazilian new state as left wing radical, I can quote Ludwig Hauerlauss on his book "Getúlio Vargas and the triumph of Brazilian nationalism", were he classifies the new state as center left authoritarian, as the dictatorship had a strong welfare state, the trade unions were allowed to continue, different from Portugal where all trade unionist activity was concentrated on a state owned corporation, and the new state pushed woman's rights.