My guess is that the elevation tube is floating. I also have two HW97 rifles and I know that when I mounted optically centered scopes on them right out of the box they were only one to one and a half inch low at 25 yards. So a 97 requires very little scope adjustment to sight in.
Now take that same scope and put it on a Diana 350 while optically centered and it can be as much as one foot low at 10 yards and miss the 4 foot target completely at 25 yards. So you crank it up close to the max elevation and the elevation tube starts floating. Back it back down and it works fine. I have even had in the past 2000 dollar name brand PCP rifles that were manufactured with the barrel so crooked I had to use adjustable rings on them. That 350 was an extreme case, most are not that bad, however some do take more adjustment than I would prefer.
Just my guess, I am not there and I do not know all the circumstances, but have had this problem when a gun requires quite a bit of elevation adjustment from the center of optical zero. When I run into a problem that requires quite a bit of scope adjustment I generally optically center the scope, then sight in at my preferred range of 40 yards using only adjustable rings, this way I only have to fine tune with the scope a few clicks. Just my best guess and may not be the situation at all.
Kit