Hi Shahirah,
For the shift between your data and the model results, did you first check the time reference (UT, local) of the 2 datasets? It's strange that the model results are in advance until about the 20th august and late after this date... what happens around this date?
Your solver accuracy (1.e-12) is too low. Default value (1e-4) should be enough or you can decrease it until 1e-6 or 1e-8 potentially. Be aware that the ZERO of Telemac2D is 1e-10 by default, so you're asking for a precision exceeding the ZERO of the model, this precision should not be reachable... Still related to this point, the maximum iterations for the solver is too high (100000). Reduce it to about 100-500 and reduce your time step if necessary so as to still have a Courant number around 1.
Your modelled water level signals seems to be noisy (if you zoom in for a one day plot for example). If this noise is still present with the previous modifications, try to also subplot the whole water depth (not the free surface) and the associated current speed for the same point. 2D plots of water depth and velocities can also help you to understand what is wrong at some instants of your simulation.
Do your water level measurements include weather effects? If yes, you can try to introduce wind (and pressure) effects. Regarding the wind, you are not considering it as you set WIND = NO in your steering file.
I hope it helps.
Regards,
Laurent