I have the same issue
The crew is not asleep, there is zero damage to the boat), and conning sensors are properly staffed but I get no sonar contacts (allied or enemy).
Perhaps in 1 in 5 periscope depth attempts do I get sonar contacts, even when they are running at 9 knots direct in front of me less than 300 meters away <scratches head>.
Diving to 40 feet doesn't appear to help much either.
I am going to apply the 1.1 patch and hope that resolve the problem.
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