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As HighlandPete says, 16C just means 'as cold as possible' whereby 16.5C uses the car's thermostat(s).
It sounds like they've been pulling apart the heater matrix where the coolant flow is regulated. It could be a cabin thermostat issue instead - something which isn't usually behind the dash. Theyre usually in the footwell, but i cant check without the TIS to hand.
Does your car have dual zone temperature control? What happens if you leave the left on 16 and right on 16.5 and vice versa?
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