Honestly, i don't know why it does not work, but i have some tips for you.
- Fake it 'til you make it:
Do not use your ship to create the waves - it has to much details, too complicated. Just slows down your computer - although i am not sure whether you are working on a render farm, because your blend file is so fully packed and on my macbook i got 0.1 fps with your settings....
So i just build a quick mesh like this to create the waves:
- first try out with very simple models/blend - files, whether your "idea"/concept works at all...
- try to adapt your model in that way....
so i deleted your brush and added the super simple model from 1 to your blend file
- added some movement by adding keyframes
-> that's what i learned from this time consuming "session": copy location does NOT work together with dynamic paint. Don't ask me why. I have no clue. But it works if you animate via keyframes. I guess that's why dynamic paint never worked with your ship because it is also moved via copy location.
- result: (of course you should hide the primitive model and tweak the settings so that it is looking good. My waves are shitty, i just wanted to show that it works)
and this is how it looks without the "simple model", so the ship is really making the waves -> is just deleted the copylocation modifiers and animated it by keyframe.
and rendered it looks like this (ok, boat was too quick ;))