the gauge had .050 written on dial and goes to 10 and therefore every sweep would be .010. every number represents .001.
Look at the gauge again and see if it says .0005 instead of .050. If it is .0005 instead of .0001 then it reads like my Sunnen gauge does in 1/2 thousand increments instead of one thousands or one ten thousands increments like my Mitiyo gauge reads. I'm having a issue now with my 4 to 5 inch outside mike, it is reading about .0008 to small(SWAG,eye balling it) when I set it up with the 4 inch standard
I don't see anyway to adjust and correct that mike so I may end up having to buy another 4 to 5 inch oudside mike. I don't use my Sunnen set up gauge to zero my dial bore gauges due to not trusting it