Does your engine have the audio warning horn system option installed for overheat? If yes, did the warning horn sound once over 196 degrees?
AUDIO WARNING SYSTEM
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Did you use a cork gasket or O-ring when installing the Thermostat? The correct position of the O-ring mattress in these cases.
You mention a new gauge and old sensor... "Possibly" the Ohms resistance might not be a correct match and giving/receiving false readings going on there if no horn sounded and the warning system is installed.
Did this issue seem to start before or after all the service work was completed?
Need your infrared temperature gun to confirm it's truly overheating.