waking up this old thread since I still don't have a clear answer on what is "Decks Awash".
I found photos of U-569 during the attack AVG posted about above (post #17). The Allied pilots had reported the sub was running "Decks Awash". That would have been a bit before the bottom picture was taken which shows the sub diving (no crew on deck) and 2 DCs dropped by the aircraft to the right of the photo.
You can see the deck was still flush with the level of the sea which would seem to indicate that the deck was a bit above sea level when it was running "Decks Awash".