OK, your using a bore gauge, I used to teach it's use (Mitutoyo 0.0001" and cheap ones 0.0005").
It only has 0.050" travel in the bottom of bore gauge button, (the third point of triangle)
It's much easier to set it in bore rather than with micrometer to get indicator in correct position.
Just about any bore will do when your setting gauge into handle, change anvils for larger or smaller bores
I've been intending to do a You Tube video on how to set up bore gauge the easy way and not the 'conventional' way.
Maybe I'll do it sooner rather than later then post a link.
I don't remember if I ever did a 'how to use' when I rebuilt a Suzuki T305 several years ago, I think that was an 'Instructable'?