That's not how errors add up, it's nonlinear. You have to take the sum of squares. So in your case, it wouldn't be 10 * 0.01 = 0.1, but sqrt(10 * 0.01^2) = 0.032, which is less than one third of a tenth.

I provided a "worst case", not statistical, example.

For those who want an example, calculator, and demo see: https://www.smlease.com/entries/tolerance/tolerance-stackup-...

NB: using disks like the site does provides a clearer example.