Alright. Here are the steps to reproduce.
Mods:
Generic Mod Enabler - v2.6.0.157
[C:\Ubisoft\Silent Hunter 5\MODS]
NewUIs_TDC_7_1_0_ByTheDarkWraith
NewUIs_TDC_7_1_0_Real_Navigation
Manos Scopes-patch for 16x9
Also have the TDW hydrophone exe fixes activated.
1. Load up the historical mission TDW Torp Tutorial.
2. Make sure, your sub is NOT heading North. Turn to heading 320 degrees by making a 40 degrees turn to port/left.
3. The contact should be at around 106 degrees. Go to the sonarman, activate the hydrophone station and point the needle to 106 degrees.
4. Ask the sonar man to follow the selected target (see picture). He responds: "Sonarman: no near contact to follow"
5. You can, however, make him pick up the contact by pointing the needle to 66 degrees
The aforementioned changes to /data/Scripts/Stations/Hydrophone.py fix this issue.