Overheating issues on a 383 Polara

So could that possibly have failed somehow and obstructed flow?

That inline heater, if it's the one I'm thinking of, has a check valve in it so as the glycol heats up it'll open the valve and move thru it till cold glycol hits the heating element. Get rid of it and get a one piece hose and make sure the spring is inside the hose, which was probably removed to make room for the heater.