I wonder how many of those or mg13 were still in used as lmg in infantry division in 1940 ...
MG35/36 apparently was only used by SS and in very small numbers. I found link to this book in one thread on axishistory forums (
https://sassik.livejournal.com/348072.html). Translator doesn't do very good job with this text, but that's how I understand that: inventor tried to get this gun approved by Heer but with no success, then at the beginning of the war he approached SS and they expressed interest. There are numerous SS documents dated between January to February 1940 that talks about this gun being in some form of trials with 500 guns being made in Steyr and supposedly given to SS-Totenkopfverbande. General concensus was that gun needed some changes but in May documents mention that there are problem manufacturing barrels and there was also a small drama involving the designer. Project was terminated in June 1940 by SS that cut all ties with the designer and refused any further funding of a project.
Most photos that I've seen are either of SS or Polizei units, but none of them are clearly combat usage. There is also one photo of NDH soldier with it, number of photos of Yugoslavian partisants with this MG's.
So propably any remaining guns were, after project was cancelled, given to anti paritsan units in Yugoslavia or used for training with SS.
If anyone is interested I attached a file with text extracted from photos of that book that you can paste into a translator. It's just quickly put together txt file so sorry that it isn't formatted properly.