Sounds odd, might actually be a faulty gauge, but try earthing the wire from the gauge to the variable resistor that should cause full scale deflection (to the right) ? Below is the diagram for 1997/11 prior to that its as you showed.
The normal problem on the diesel is that the earth for the variable resistor comes via a tag board on the top of the tank and this fails, so earthing the tank restores the earth, might be worth putting a new earth to the tank itself and see what happens?
The gauge has a locking function, so that when the Ignition is Off it locks the display position so you can always see what should be in the tank, I wonder if that has failed, its why the gauge has three wires +12v, signal and then an earth connection the +12v and earth release the lock when power is on.