"Or, is the death of Bismarck scripted to be unpreventable?"
Yes

the endless circle is what happened historically, with the rudder damage, this gave the British battleships the chance they needed to p0und her into scrap.
you having removed the Battleships does not alter the outcome, the Campaign is not that interactive, unfortunately.
It would be awesome if it could've been though, makes sinking the Hood in late 39 even better, stealing Bismarck's credit