I'll land three straight precision shots all day, but it won't refill the mag or give me ammo when I miss. Everything unlocked but the last two damage mods.
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The perk for reloading your mag only works if the 3 shots are made rapidly. Your first two on the knight in the beginning are close enough, but the third is not. Try sticking to using it on a single enemy or in tight groups so you can make all three shots quickly. The second perk says it has a "chance" to return ammo on a missed shot. This sniper rifle is a beast in the raid on Knights with its damage booster and on any yellow barred enemies. With steady aim you can unload every round in your inventory without reloading