It’s my understanding that the result of all the Catholic-Lutheran dialogues confirms that Martin Luther was right all along: Works play no part in salvation and we are saved by faith alone.
I think you may have misunderstood the Lutheran-Catholic Joint Declaration on Justification, with its Common Statement and Annex.
We are saved by Jesus’ death and resurrection. Faith, however, is more than an activity of the mind; it must express itself outwardly. In Matthew 25:31-46, Jesus tells a parable about the final judgment, saying that some people are saved because of their actions and other people are condemned for failing to act.
Those who are saved do not “earn” their salvation by good works. Their works of mercy simply reflect a cooperation with God’s sovereign, saving grace. Those who are condemned presumably failed to cooperate with that same grace.