I don't know this for a fact, but with the new acoustic modeling, sound channel cutoff frequency may be a deciding factor in whether or not you get anything on your demon display.
Blade rates for major warshps and submarines are going to fall under 20Hz, with shaft components obviously being even lower. Frequencies in that range won't be affected by most ducting or channelling. That said, at 5nm you'd be in direct path country, so I dunno. But, if you were both in a surface duct it could be that his blade and shaft components took off someplace else - I've seen the effect in real life off of very loud surface contacts. You get any number of sources except blade and shaft, just because they fall well outside the sound channel's frequency cutoff.
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