Does the ambient temp gauge read accurately before the engine warms up?
A similar issue happened in our 2000 V70.
The ambient temp sensor in this V70 is held in place by a small plastic bracket located in the right front vent/small grille, mounted low on the front valence. (Where fog lights go in some models but not ours).
The bracket broke, and the sensor was hanging loose by the wire only, closer to the engine bay where it's hotter. Temps were reading at least 20 degrees higher once the engine was hot. It read accurately before first engine start of the day.
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