I have a DEM in UTM (meters) / NAVD88 (meters) and need to transform it to State Plane (feet) / NAVD88 (feet). Unfortunately, I do not have the raster calculator in ArcGIS, so I have to use "Project Raster" and apply a vertical transformation. My xy coordinates are correct and the scale of my vertical coordinates is correct. Since they are both on the same datum (NAVD88) and only differ in scale, you'd think that the vertical transformation would be easy (just multiply the vertical values by ~3.28) and would work correctly. However, vertical coordinates shift upwards by ~ 5' from where they should every time I apply this transformation. Any idea why this happens?
Side note: I have resolved this problem in QGIS, but would like to try to figure out why I am having trouble in ArcGIS as I would prefer to perform all of my GIS operations in ArcGIS. The attached image shows the default transformation which is applied (unnecessarily/erroneously) during the operation.