The 175 max is crush depth, not test depth. I believe all early-war U-boats technically had a test depth of only 100m.
The 'crush depth' itself is a very difficult thing to define, because there wasn't a way of finding it out exactly unless Germany would be dumb enough to waste one of their few precious boats to see how far down it would get crushed. The only ones who knew the exact crush depth for a boat were the crews unfortunate enough to reach it, and I don't think any of them came back to tell about it...
Since patch 1.4, Type II's should start taking damage at 157m. If you go up fast (blow ballast), you may well save it. The Type II is understandably more fragile than the other boats, because unlike all other ones it only has a single hull.
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