Q:4 Hot water temperature fluctuates at the top.
When using hot water, check for the neon light on the heater. It should remain on during hot water use, but if it goes out then it is possible that the water pressure may be fluctuating. Since these models function on a consistent pressure, if the flow rate is barely sufficient it will cause the flow switch to turn on and off. Also, if the inlet water temperature is warm or hot, the unit will cycle its low thermal cut-out to prevent the unit from overheating.
You can improve the flow rate, you need to make sure that the inlet and outlet service valves are not too tight. Also, it is essential to clean the inlet filter screen and faucet aerator screen. You can also try removing the restrictors at faucet for increasing flow rate.
The changing weather can also be responsible for inlet water to be warm. In this case, it is recommended that the selector screw in heater should be positioned to the LO setting. Turn the heater off, remove front cover and slightly loosen selector screw. Change the screw to LO setting and retighten. Bear in mind that this heater is designed to recognize cold water and is not designed to be used as a booster so do not plumb in preheated water into the unit.