"...I recheck damage control and see no signs of flooding or bulk head damage, just the decoy deployer and deck gun. But my sub will not raise nor stablize and continues to sink..."
Next time you start taking damage look around the 3D compartments. As long as you see water squiting around you are still damaged even though all the indicators look fine. Not a good time to submerge further.
"...Not sure if this has been posted. WO spotting ships at Periscope depth..."
Not a bug. Yes, mentioned many times here. Your crew assists with contacts with all available sensors. Obviously your parascope was up.
-Pv-
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