Starting a BB Duster project
Is the temp sensor in the OE location(or very close to it)?
If you’re using you’re temp sensor/t-stat housing, my guess is there is very little coolant flow right at that location until the stat opens.
The path of the flow in the w/p housing with the stat closed is actually going away from the sensor(flow is going down thru the bypass hole).
With the stock sensor, it’s located in the path of the coolant right as it comes out of the heads and back into the W/P housing.
I would try a stat with a few holes drilled in it so there is always coolant flowing past the sensor to see if the numbers are steadier.
I suspect the higher temp readings at speed are simply the result of the stat being open farther, allowing more flow past the sensor.