Foo-fighter reports occurred in perhaps the worst environment imaginable for clean visual observation: darkness, combat stress, flak, fires, searchlights, tracer, weather, unfamiliar enemy systems, changing front lines and constant expectation of attack.
That makes conventional explanations serious. St. Elmo’s fire and other electrical phenomena, ball-lightning-like effects, distant aircraft, ground lights, astronomical objects and flak phenomena can plausibly explain subsets.
The secret-weapon hypothesis was also natural during the war. Yet no demonstrated German operational system has emerged that cleanly explains the broad pattern, especially reports of luminous objects that paced aircraft without attacking or producing an obvious tactical effect.