MINOR UPDATE:
I brought the boat to a local outboard repair shop that is highly rated. They have it now and will begin working on it soon. If they cannot get the LU off, my next plan is to bring it to a friend who KNOWS he can get it off (violently if necessary - since it is dead to me otherwise and will become a spare parts motor if we can't get the LU off).
The work I did to the power head (new thermostat, poppit valve grommet and water jacket gasket) did NOT solve the overheating issue. I reconnected the temp sensor using a WAGO for easier quick disconnects in the future and I think it actually improved the connection a little.
I gently putted around the pond last weekend to test my repairs and the high-pitch ringing coming from the motor is starting earlier now in my acceleration, like around 2000 RPMs if I had to guess. The problem is getting worse. Also, the pee stream coming from the tell tale is getting weaker. It's still a steady stream, but barely. We all suspect a deteriorated impeller/water pump kit as the main culprit, with a possible obstruction in the water cooling circuits as well. I barely ran the motor that day and was very cautious. The cylinders felt hot when I got back to the dock.
There are two bolts which snapped upon removal (1 of the 4 main bolts and the trim tab bolt). These could be the only thing preventing the LU from dropping.
Fingers crossed the shop can get the LU off and get the cooling system working right. Stay tuned for another update soon...