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An easy check on the thermostat is how quickly the engine warms up, if it's taking inordinately long and/or you can feel hot water going through the upper radiator hose before the temp gauge is up, then it's the thermostat opening at too low a temperature.
If that seems okay, then I'd check sensor resistance of the ECT. I think Haynes will give you appropriate resistance by temp. Maybe just cleaning the coupling will have an effect, it can get pretty corroded. I just replaced the ECT on the new-to-me 850 that came from Pennsylvania with similar symptoms; car looked pretty clean, but it looks like that coupling soaked up a lot of salt! Just about destroyed it taking it apart. I now have an attractive zip-tie holding the new ECT to the coupling ;-)
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'96 850 and '83 244 DL both at about 200K; '97 850 T5 currently on AutoRx; gone but not forgotten '81 245 and '64 Amazon
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