Most posters see rearmament beginning in 1935/36 Hitler years and thus cripple any chance of build descent warship/fleet. A better approach is to start from Naval plan 1928 [1932] and evolve from that POV. This plan was based on building the following fleet by 1938-40.
1 Aircraft Carrier [modeled on HMS Glorious]
6 improved Panzerschiffe [AGS stretched to include third 11"turret]
6 improved Kreuzers [improved L class => M class]
several flotilla's of Gross Torpedoboot [improved GTB 1924]
several flotillas of U-Boats. [Type-I & II ]
9 squadrons of maritime aircraft.
No doubt such a build is possible within the historical framework , but hard choices would be needed. Historically 21 large warships were laid down in the 1930s.
Cancel the carrier was more likely still. One aircraft carrier with no reserve is a failure to happen anyway. The idea to continue building cruisers with 28 cm artillery was a flawed project, after the French Dunkerque was started with adn other navies also announced starting to build fast battelships of around 28 -30 knots. In the OTL the battleships of the Scharnhorst class were build as a response to the Dunkerque, provoking the British to develop their King George V as fast (28 knots) battleship, where earlier it was a slow battleship on paper with 23 knots. France answered to the Scharnhorst, as well as the Italian Littorio, by building the Richelieu class, which resulted in Germany starting the Bismarck class (After that the British came with Lion)
M-type cruisers were an integral part of the Plan-Z, though purely seen as supportships for the H-Class battleships, not so much the independant raider, untill the slightly smaller Spah-Kreuzer came around, releasin ghte M-type to become a pure merchant hunter, liek the Great War period SMS Emden had performed well. That means: no H-Class BB's, no M-Class cruisers, as the type was not very well thought through as fighting ship in the first place and weak compared to contemporary designs abroad.
Also missing completely is the Destroyer program, as the "Gross Torpedoboote" were not seen as destroyers by the Kriegsmarine, due to their offensive purpose. A more Multi-purpose design was missing still, which eventually became the large Zerstörer types, with their flawed powerplants. As a design these ships were a bit large, but well thought through, plagued by unforseen technical problems, which did plague more than just these nice looking ships btw.
In the U-Boote, the Type I was a flawed design, being not addaptable for mass production, compared to the slightly smaller Type VII. Also the Type I and Type II lacked range to cover the Atlantic, forcing the need to also create a long range type as well (Type IX). Likewise Type II, Type VII and also Type IX were relatively easy to construct and maintain, besides tough.