I have been playing the DCG Pacific career and have the "Ships remain sunk" option checked.  In my current career the Yorktown was sunk in the last mission of the Coral Sea campaign and re-appeared in the next mission, the first mission of the Midway campaign.

 

Is that correct?   Do ships 'remain sunk' only for the duration of a single campaign within a career?

Curious that this should have approximated what actually happened to Yorktown -- the Japanese were certainly unpleasantly surprised when she re-appeared at Midway.  Perhaps the game crews did an even more miraculous job than their real-life counterparts?

The "ships remain sunk" is only good for the campaign in question.