360 is still running hot

Do they sell a spring I can insert into the hose to prevent the collapsing?

Is it a big deal if extra water is getting by the t-stat? Im just curious is all.

Those are simply two things that are incorrect beyond the shadow of a doubt. You should fix them before trying to diagnose any further. You can make a support spring from a coat hanger if you cannot find one. I don't know if fixing either or both will solve your problem, but it certainly will not hurt.