Here's the beauty of the Sherwood system:
Normally, ambient pressure at depth enters the holes of the ambient chamber (think: Mk 10/25) and pushes on the back side of the piston, opposite the IP chamber.
As pressure (depth) increases, it gets easier for the spring to push along with ambient pressure to open the valve. The valve finally seals again at the sum of spring pressure and ambient pressure. That way, the RELATIVE IP is always the set amount (~135psi) above ambient.
But the Sherwood is dry. There are no holes to allow sea water pressure to push against the back of the piston (as long as the bleed plug is working). Instead, as the reg sits there, a tiny amount of gas (16-30 cc or so, depending upon model) leaks through the piston head from the IP side into what looks like the ambient chamber on any other reg. But the piston head side of this is a blind chamber, serving only to add pressure on the head of the piston. The second stages do not feed from this chamber like they do on a Mk 10. Instead, this chamber serves only as the IP chamber, and air leaks from here into the standard ambient chamber and out the bleed plug. If sea water pressure is higher at depth, the bleed plug is held closed. The pressure in the blind chamber increases as HP air bleeds through at ~20 cc/min until the pressure in the blind chamber exceeds seawater pressure plus set IP and the piston is forced to close the valve. At that point the bleed plug feathered edges unseat and the reg bubbles again.
This happens continuously (hence folks telling a Sherwood diver that his "first stage is leaking"). However, when you dive, the bleed plug is pressed closed against the passage from the ambient chamber to the sea. So this 'true' ambient chamber stays dry.
If the bleed plug is not bleeding, it is most likely that the calibrated leak in the piston head is gunked up, and the reg briefly acts like a commercial "sealed" regulator. In other words, its relative IP drops as ambient pressure increases. It's IP is briefly "fixed". And
@giffenk , you are abolutely correct. With a loss of bleed air into the ambient chamber, sea water will indeed push past the edges of the bleed plug into the ambient chamber. But whatever resistance to water ingress that the bleed plug provides until the ambient chamber reaches equilibrium will mean a lower relative IP. That was the source of my comment about a drop in IP during a rapid descent if you have minimal bleed air flow. But the bleed plug is sturdier than it looks. Leaks past the feathered edges are usually from corrosion disrupting the flat land where the rubber seals. I'd bet a new plug and land could withstand at least an atmosphere of excess pressure from the outside and stay dry for awhile. But eventually it would indeed equalize from sea water leaking into the ambient chamber, and IP would recover.
The second issue causing zero bleed could be a blockage of the passage from the ambient chamber to the bleed plug and the sea, but this is unlikely, since the passage is ~2mm in diameter. If that were to happen, the IP would probably creep, but I'd have to look at the schematics again to make sure I've got that right. I think this is correct because the ambient chamber is usually in the 14.7-90 psi zone (1-6 atm). Meanwhile, the IP is a minimum of 40 psi over that, so if the laser hole is working but the bleed is plugged, then the ambient chamber pressure increases, simulating deeper diving, and the IP should increase correspondingly, just from air bleed without a depth change, and that should look like creep.
Unfortunately, it will not just become an unbalanced reg if the bleed air stops. Being "unbalanced" is a different thing relating to changing
tank pressure and IP, not changing ambient pressure and IP.