Hi there,
You are entitled to 520GBP each plus whatever meal expenses you incurred during the delay at MUC.
Fill out an EC261 claim on Lufthansa website.

https://www.lufthansa.com/us/en/fast-compensation

Lufthansa group tend to deny claims and say every delay or cancellation was due to extraordinary circumstances. Ignore them when they do this and file a claim with the small claims court. Its easy to do.
I have done this multuple times.
When Lufthansa receive the court papers their lawyers get in touch to settle.