Dip stick ?

[Malibu46pt]

Not sure how the dip stick should fit into block. Blue Print 302 engine
Smaller diameter ( red arrow ) fits loosely into block. Next diameter ( blue arrow) is larger than block and tube stop at this diameter. This diameter is about .015 larger than the hole in block.
My question is , should the tube go far enough in the block to reach the first large ring ( green arrow)

If it should I must have the wrong dip stick ( supplied with engine from Blue print)182922

[Chadillac]

I have the exact same issue with my Blue Print 347. It really seems to me like it should go all the way to the green arrow, but I was not able to get it past the blue arrow.