I believe that 'No duds' means that torpedoes will not prematurely explode, run at different depths than set, or have a faulty detonator.
What may be happening to you is that the impact AoB (Angle on bow) is too much for the torpedo detonator. German torpedoes were, I believe, fitted with a detonator on the tip.
If you've not noted yet, our torpedoes are fitted with a rounded head. In the centre is a small propeller that also houses the firing pin, if you will, for the detonator. If the torpedo hits a ship without this pin being triggered, then the warhead will fail to detonate and the torpedo, though not a dud, will not be a hit, per se.
Note: This is an issue only with impact torpedoes. Magnetic torpedoes do not suffer from AoB issues similar to impact.
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"That flag and I are twins, born in the same hour from the same womb of destiny. We cannot be parted in life or in death; so long as we float, we shall float together."
As much as I dislike it sometimes, I'm a tin can sailor, through and through.
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