Some times this circle means that the convoy is followed by a U boat. I have seen it when I intercepted such a convoy. I saw an IXB with the external view. Pity , she didn't attack the convoy.
In fact this AI sub will never attack with torps so don't expect a wolfpack attack here. You are alone.
The only benefit you might have is that the escorts will have and someboby else to deal with.
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