Temp sensors can trip a check engine light, but have seen it the other way.
A bad t'stat will cause overheating because the water circulates through the engine and radiator so quickly that the fan never has a chance to cool the water in the radiator. The thermostat keeps the water in place longer so the fan can cool it. Doesn't seem to make sense, but that is the way it works.
You may need to replace both the temp sensor and thermostat. The temp sensor is dual function: feeds gauge and computer temp information.
Good luck,
dick
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