Keep in mind that you sank a Battleship of the Nelson "Class", not necessarily the Nelson herself (Admittedly a very small class, but it might have been the Rodney).
The game only gives you the class of the ship, not the actual name. So if you sink the "King George V", you may have actually sunk the Prince of Wales, Duke of York, Howe or Anson instead. As already mentioned by many others, the game of course, doesn't really track individual ship (or even class) losses, but the above does provide a semi-reasonable rationale for bumping into the same ship type again (Course if you sink three Nelson class, when they only made two the rationale goes out the window, but Hey, were playing an alternate version of history anyway, whose to say they didn't build three of them in this alternate universe).
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