No, that is not the way a shunt works, it is not based on voltage drop. A shunt allows the major portion of the current to bypass the meter and only a small portion to pass through it. If the current is flowing to the battery, a small portion flows from right to left toward the battery deflecting the meter in the charge direction. If it is flowing from the battery, a small portion flows through the meter movement to the vehicle load causing deflection in the discharge direction. If the battery is fully charged and the alternator is able to supply the demand all current goes strait to the load without going through the meter. If you look at the diagram, you will note that the connection to the battery and the meter are in parallel and follow ohms law for parallel circuits. The meter and it's light gauge wires are a high resistance path while the heavy cable SHUNT is a low resistance path and the amount of current passing down each path is based on that resistance.
I'm not suggesting the shunt is blown since it is the highest current carrying piece of the circuit and you are right it is necessary to charge the battery. I'm suggesting there is a problem with the meter or it's connections across the shunt. If you can read continuity for both connections from the meter terminals, then the meter is the suspect. Test points would be 1. From one meter terminal to the A contact on the voltage regulator 2. from the other side of the meter to the output lug on the alternator. If both of those paths are reading in the low resistance range (nearly 0), then the meter is bad. If they are not, then check the connections. You can trace the wire very easily based on color code, it will be the same from end to end and the code is not shared with any other function, (the meter, by the way is the high resistance portion of the shunt, the wires are normal wire, just small gauge, not resistance wire).
Good luck,

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