[Bug] Local Z diverges

[dakejahl]

Describe the bug

When using the range finder as the primary height reference the Local Z diverges while the vehicle is on the ground.

To Reproduce

make px4_sitl_default gz_x500_lidar_down

change EKF2_HGT_REF to 2 (Range)

also reproducible with this unit test
#24161

Expected behavior

Local Z does not diverge

Screenshot / Media

Flight Log

https://review.px4.io/plot_app?log=97012338-adb0-4ad7-a72c-0bbc5f05a0e7

Software Version

main

Flight controller

sitl

Vehicle type

None

How are the different components wired up (including port information)

No response

Additional context

I'm trying to fly my quad with an ARK Flow in position mode and it does not hold altitude. I am on a quest to make this work.

[TompsonTan]

I also encounter this bug.