Elaborate because to my understanding his sharigan should be capable of seeing through it and locating the clan and the mizukage via his chakra.
The sharingan Sees chakra color and thats about it!
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And do you know why kakashi couldnt see through the Hidden mist jutsu???
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If your slow ill break it down.
The hidden mist jutsu; is when a ninja is releasing a
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(water nature) in the environment that affects the opponents vision! And this is where the Sharingan Fails! Since it is a constant flow of chakra being circulated, all the sharingan sees is?......... Ill wait....... CHAKRA IN THE FORM OF MIST!!!!!!!!!!!
Now here is where the 2nd mizukage goes beyond anything ever shown and why he is that broken! ^_^
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The clam uses a mist/fog to create a Battle field wide genjutsu that affects more then just your sight! No matter what you do you are in a constant genjutsu! You cannot break his Genjutsu because??? Well ill break it down further!
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Now with that being said, you either disrupt your flow of chakra or have someone else flow chakra into you to stop any genjutsu correct???...
No matter how many times you disrupt your chakra or some one tries to help it will be useless! Why you ask? Because as long as your with in the area affected and that clam is still pumping chakra in the environment; You will forever be in that genjutsu/mirage! FOREVER!!!!! Until that clam is stopped you will be in the genjutsu! Fact!
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Ill repeat simpler; Its like being in the middle of the Pool (the pool is the battle field genjutsu) and your a man in the middle of it! No matter if you put a suit on (disrupt chakra), you'll still be Wet (in the genjutsu)! No matter if someone puts a suit on you (helping you), you will still be in the pool wet! Until you get out of the Pool (area) or destroy the water pump that is supplying the pool with water (the clam pumping the environment), it is useless! Get it now???
Now lets get too the point! No sensor can sense him while they are in the genjutsu (unless sensor sand like detection)! And WIth that much chakra 360 everywhere! No sharingan in the world would be able to weed them out! Ill break it down again!
There is a room painted black with no windows! There is a black fly with in the room! Lights go off... Can you find the black fly with in the room??? Even with a flash light it would be nearly impossible for a longgggggggggggg Time!
I can go further, But ill sum it up:
Clam produces constant NONSTOP chakra affecting the opponent indefinitely (genjutsu)! Sharingan cannot see through chakra everywhere in the environment (fact)! Sharingan isnt breaking a nonstop genjutsu that will keep putting them in it the
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! Get it now?
Sharingan is not immune to genjutsu (as proven multiple times with sasuke, kakashi, itachi. They are just good at breaking out of it and getting themselves out of visual genjutsu.