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I had a Nissan that had a bad sensor. It would read correctly up until it hit a certain temp, then it would fly up into the red. I was able to open the radiator so took a handheld heat sensor and took the temp of the coolant when it showed red and was well under what the gauge showed.
When you turn off traction control, it doesn't turn off ESC in a 2wd. I don't think holding the button down for 5-7 seconds works unless it's a 4wd. Maybe try pulling the fuse (I think f26 labeled "Mod ESC") to confirm it's not just ESC still engaging.
I have MT ATZ P3's on my 1500 and Baja Legend EXP's on my 3500. I'm a Mickey fanboi. The tires have been very good to me and being made in America, at an American owned factory, by American employees gives me a little warm feeling.
* Edit to add - Nothing against you Canadian boys, just me...