Hello, I have an issue with Solidworks displaying incorrect dimensions compared to measured dimensions of an object I have physically. See images

As you can see, I measured the physical sample by hand. The true measurements of the physical object do not come close to what Solidworks Smart Dimensions produce when I try to replicate it. When I try to set the dimension circled in orange to 127mm (5 inches), it pushes the buttons (Circles) off the panel (see image).

What am I doing wrong?