Lots of women have claimed to be "Lili". And Leip knew a lot of women "well". He did marry Lina Stellmann, "his childhood sweetheart", in 1916. But it seems that in the 20's he became a literary lion. Seems to have been somewhat like a rock star. As this book puts it, Leip and his friends "declared themselves free of the constraints that tethered human sexuality to the rusty fence of morality"--(how's that for a turn of phrase?)
There seem to be a fair number of theories as to the identity of "Lili". I'd be inclined to believe Leip's own answer--a combination of the two girls--rather than the cover-up theory. But if there is more evidence to back up the cover-up idea, we can certainly examine it.
To answer the other question, about Leip's WW I experience, he appears to have been very lucky. Not even a month into combat, he fell and injured his spine. Enough to have been invalided out of the military--but, it appears, not a permanent disability.