Hello,
You obviously get some inf-sup oscillations in your results, and as a matter of fact there is nothing in your parameters to prevent them (spurious oscillations may appear in Navier-Stokes equations when velocity and pressure are discretised in the same way).
try :
FREE SURFACE GRADIENT COMPATIBILITY = 0.
and see the effect.
Also change all preconditionings from 11 or 7 to 2. In 3D the most powerful preconditioning is 34 (direct solution on verticals). This does not change the results, only the computer time, so do not loose too much time on this unless you see big differences in time.
Also try :
IMPLICITATION FOR DEPTH : 1.
IMPLICITATION FOR VELOCITIES : 1.
this should stabilise and allow you a larger time-step (larger Courant numbers can also break inf-sup oscillations).
With best regards,
Jean-Michel Hervouet