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As a collector and seller of vintage jewelry, I don't think you overpaid. 800 silver was typically used in Germany and Austria and this design is consistent with the era the seller claims it is. I've had synthetic rubies in platinum from the same period. I suspect the stones are synthetic (which is lab made corundum, different from glass or paste, and yes, was done in that time period). It could use a good cleaning. By the way, glass looks very different than even a synthetic stone when viewed under magnification.
It's your decision whether or not to keep it but I think it's a lovely period piece for which you paid a fair price.
oh you have to scroll down for more pics, its set in 800 silver, i was told that that's common of the time period
well, i dont think there was lab made sapphire back then. a synthetic stone is glass.
and i think man made stones had an engraving on them or something stating that its lab created