@tengrrl ,
There are a couple of possible misconceptions here. Both are common misunderstandings about gradebooks that we see people ask about in the Community.
If by set "ungraded to zero", you mean going through and setting the default grade for every assignment to 0, then this makes sense. If you mean "treat ungraded as zero" as the option the gradebook, then you do not understand what that option means. It is advisory in nature and only affects the instructor's gradebook on the machine and browser where it was set (it's set in a browser cookie and does not persist from machine to machine or even between browsers on the same machine -- it may carry if you have browser synchronization turned on and told it to synchronize cookies).
It in no way changes what the students see. It allows the instructor to see what grade the student would receive if they made no more submissions the rest of the term and 0 was entered for all of the grades.
The second misconception we hear about gradebooks is that you can't do percentages because you're using points. You cannot use points in a grading scale, but the good news is that you do not need to.
Every points-based gradebook with a fixed number of possible points can be represented as a percentage-based gradebook. Just divide your points by the total possible and then convert it to a percent by multiplying by 100.
You have exactly what you need to use in your post for. The minimum number of each range on the VT Letter Grade portion of your table is what you would enter.
Since Canvas doesn't round for you (more than two decimal places worth), you enter the smallest number in each range. A: 93, A-: 90, B+: 87, and so on. What you have shown is very much the grading scale that I use in my class (although I have an A+ for 97+%), so I just did a screen shot of it.

If you wanted to round, you would have to enter 89.5% rather than 90% for that bottom A-.
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