Right. The stadimeter can be useful, but it will be very misleading if you use it according to the instructions in the manual.
I think it's a but silly in any case, to have this requirement of two specific points (waterline and top). The waterline isn't even approximately constant in reality for ships which can carry cargo.
It would be better to have the 3D reference image rendered as if seen through the periscope at the magnification setting you used. Adjust range and angle, and mark when the picture and the reference look the same.
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