With regard to reading the vernier.
The normal belief is that the dimension that you read will be within a thou. The difference between one pair of lines and the next pair coinciding will hardly be discernable, even with a magnifier.
Remember, the vernier part will differ by 49 or 51 divisions from the 50 on the main scale, so the resolution between one line and another will be VERY small.
You can either use the Height Gauge to measure, or scribe directly, of use a DTI, preferably a finger clock. Zeo it on the object to be measured, and then clamp it
Build up a pile of gauge blocks (slips) until the clock reads Zero again.
No gauge blocks? Make up an adjustable assembly.
Take a piece of bar and face the end to a fine finish. (NO central pip). Reverse in the chuck, cut to a little under the length that you want to measure, by at least 1/2″. Face, and drill and tap with a suitable fine thread (ME 40 is good, giving a fine adjustment )
Make up an adjustable length gauge with the same size thread, knurl and face the head,
Make a thin, knurled locknut
Assemble the three components
Adjust until the clock reads Zero and lock.
Either use a Micrometer, or calliper, to measure the length.
Or even exchange the scriber for clock, and use the Vernier Height Gauge to measure the length of the adjustable length gauge. Although, this would be the same as using the Height gauge directly.