I cannot duplicate this with the given information. Here is what I tried with a fresh installation of the game (default cockpit head positions).
Enter the cockpit of the plane.
Press 'Z' to toggle zoom on. Look up and look down work.
Press 'Z' to toggle zoom off. Look up and look down work.
Looked up, press 'Z' to toggle zoom and it worked.
Press 'Z' to toggle off the zoom.
Looked down, pressed 'Z' to toggle zoom and it worked.
What am I missing?
I renamed the settings folder and it works normally now. With the bug the gunsight isn't centered until you select the forward view and the forward view becomes an alternate over the nose view that hasn't been set anywhere.
The same thing happened on another PC with a new install of beta 2. Deleting the settings folder fixed it. I don't know which file was causing the problem.