In order to estimate the length $L$ of an object the distance from its edges to the $0$ of a graded ruler are measured. Assume this object has its edges at $x$ and $y$ (mean values) with standard deviations $\sigma_x$ and $\sigma_y$ respectively, and it has a constant length, thus the two variables are not independent. It holds $y = x + L$. The function we then measure is $ L = f(x,y) = y - x$.
Using the error propagation formula
$$\sigma_L^2 =\left| \frac{\partial f}{\partial x}\right| ^2\sigma^2_x+\left| \frac{\partial f}{\partial y}\right|^2\sigma^2_y+2\frac{\partial f}{\partial x}\frac{\partial f}{\partial y}\sigma_{xy}$$
$$\sigma_L^2 = \left|-1 \right| ^2\sigma^2_x+\left| +1 \right|^2\sigma^2_y+2 (-1)(+1)\sigma_{xy}$$
$$\sigma_L^2 = 2 \sigma^2_x - 2 \sigma_{xy},$$
because $\sigma_x = \sigma_y$. Moreover $\sigma_{xy} = E[(x - E[x])(y - E[y])] = \sigma^2_x = \sigma^2_y$, using again $x = y - L$. This yields $\sigma_L^2 = 0$.
Intuitively I expect twice the error: $\sigma_L = 2 \sigma_x$. Why doesn't it work out like that?