You say your raw water cct is plumbed from the engine, to the HWH, and then to your
exhaust elbow. (Odd that a 3GM is RWC) Is it in series or parallel to the
engine cooling circuit?
If in series pluggage in the heater is unlikely because you would not get the flow, no wet
exhaust, and a hotter running engine.
If in parallel, then it's totally possible that there is no means of ensuring that the warmer water actually goes through the heater. If the heater is above the engine (physically) there may not be enough pressure to force the water over that loop, it will much more easily all go into the
exhaust. A circulating
pump in the
line to the HWH may help you there but there is a risk of interrupting or short circuiting the regular path of the engine coolant.
But....your cold running engine still points to poor thermostat performance, and your "cold" hot water sort of bears that out.