Cusser
+1y
I'd stick my head under the dash and look toward the center (sorry, can't remember which side of the hump to lay down on), have helper rotate that knob so you can watch and see which one is "partially" moving.
Then I'd disconnect the cable end, and see if the knob can then rotate fully.
I think your two temperature problems are connected/related. When it seems to be in the blue range, it's really partially opening the heater.