I'm not an expert on this, BenPerfected he is a great resource. His boat also runs like a scalded cat. Anyway, isn't it possible pressure can remain within tolerances and if flow is slowed down you have an overheat issue? People are always referring to water pressure but in marine application water flow is just as, if not more, important?

Any chance the gauge is wrong?

What does your impeller look like? It should of burned up if you weren't sucking any water. I smoked one a couple weeks ago and had zero water pressure. Water psi alarm went off and temp was at 180. Luckily the alarm saved me. I'm wondering if you have a blockage somewhere farther down the line past the water psi sensor or reading.

Each engine has a mechanical gauge mounted in the same location and they both generally read the same so I don't think it's a bad gauge.I haven't checked the impeller but the sea strainers filled up with swirling water after I uncloged everything and fired it back up.

I can't answer that, but based on my experience with what happened, yes you can have good pressure but apparently a flow issue.