Running with no thermostat can cause issues too.
(from what I was told once)
The coolant flow isn't being regulated, it can flow too fast and not actually draw any heat out of the metal, and this can cause hot spots around the cylinder walls.
Actually boiling the coolant in localized spots.
This could be the temp fluctuations you see.
I think from memory, you need the coolant flow slow enough to transfer the maximum heat energy into it, but not too slow as to cause boiling,
(or too fast as for above reason)
plausible?
1999 110 Defender 'Extreme' TD5
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