Penetrations of the upper belt would be a great way to cause damage in the upper hull. Not only do you have the damage from the shells, but the upper belt armor is a great source of splinter damage.Your argument is that extensive damage in the upper hull (but not perforating the upper belt!!!)
As lwd has already pointed out, all added weight will cause the ship to settle. If that weight is above the center of gravity, the ship becomes less stable.But sinking deeper in the water diminishes the chance of capsizing too.
I don't know why this is puzzling. Portions of Bismarck's armor deck are below the waterline all the time--that's part of the compromise in her design. Even the uppermost portion of the deck is only a small distance above the waterline.What puzzles me is why Bismarck "sank" deeper in the water, so that the main armour deck became eventually lower than sea level.
This amount of water could however not come in because of the small number of fractures caused by 4 torpedo hits (2 by SF and 2 by D) against the main belt, 1 against the rudder section or the 5 piercings in the hull (2 of PoW and 3 of R/KGV.
Only one aerial torpedo hit the main belt. It would have caused only minor flooding. I don't know why you are ignoring all the large-caliber shell hits to the upper hull.