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Solution
 
Reward: The Fighter levels up!
The Fighter is twice as good as you are when it comes to naval battles.

Each of the grids below contains 10 ships (one 1×5, two 1×4, three 1×3, and four 1×2). In traditional Battleship fashion, none of the ships in a grid touch one another, even at a corner. To help you locate them, the bigrams in each ship, reading left-to-right or top-to-bottom, make a SOWPODS-valid word.

PAFLAVORAKEYRIIDIAMA
CIAPENEARETEVISTRNIT
TYPICALITYNEONVOLLEY
PONGMOSMOLBRUNCHANDO
RISOUFFLESAEQUARTZAN
GOLVLAIVERVIELTROOGS
PRENGETHHILOPHUEREHA
INCYBOACMONGOOSECOND
DIRIMERELYPAROMPNODO
EFUMSIPTNORMSSECZEMA
BEDOOGREENCHANDOBEAN
GRUBBYZEPHYRTOUGHOTI
OUTFITEMIZEDGRMOLDQU
TEULLINEGIMOANTOINES
LAONSETTHOUNDERWORLD
GLADRILEANTCSTAYGATE
ETRIADMIRELATIVISMNN
MEDIBONOTUIRNGTROTIO
RRCOUNTYRNATENEOHEUS
IOLELYFELESONNUSRDAW
TEACHEROLOSOLYNOIDRO
RRNEXTOFKINNEKUMDONK
ATDEIGNINGETPIERCEIM
ICTOUACAMOCLAIMANTPR
JOURNALISTOCKADELIES
DHARMAPARIKWANZAFEST
PUMPWASHPEORZOETROPE
RSADGOCAATKSLAANSALS
FOULNINCOMPOOPIARYON
ERRINGELICOLATEDORSE

All ships, by length, A to Z:

Ten ships in your fleet have developed unsightly blemishes . . . please present those ships in alphabetical order for inspection.