Noob Measurement Mystery
Your meter reads AC in \$V_{rms}\$, which is very different from \$V_{pp}\$.

For sinusoidal signals:

\$ V_{rms} = 0.3535 \cdot V_{pp} = \frac{1}{2\sqrt{2}} \cdot V_{pp}\$

And therefore \$ 5V_{pp} = 1.767 V_{rms} \$

Also, because you've set your DC offset to 0V, the DC average of the sine wave is 0V, hence the \$0V_{dc}\$.

Therefore, both your measurements are exactly as expected.