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The wonderful, underworked Volvo engineers put that temp compensation board into the instrument cluster beginning in 1985 or 86. The earlier models show what's truly going on.
The range of temp you see looks like a thermostat problem. First start, the temp should rise almost to red, then drop to 9 o'clock normal position as the thermostat opens fully.
Since the temp drops when you are above idle, try this - open the heater to full hot and see what changes. Cooler? Rad is not removing heat fast enough at idle. Water spray from fan side outwards (engine stopped) to blow out and dirt and junk from the rad fins.
If that doesn't do it you may need radiator work.
Brakes. The brake failure light comes on when the pressure in the two circuits is not balanced. This often happens due to failure of one of the O rings in the distribution block. Look for low fluid level in one of the two the MC reservoirs, and a leak spot on the ground just inside the LF wheel.
You can feed the leak while preparing (gathering parts, time, money) to make the repair. Since the lines from the MC to the distribution block are vertical, the leak will allow air only into those lines - at first.
Carry a can of DOT 4 fluid on board. Check the fluid morning and evening. Top up especially every evening, so that any air bubbles in those lines can float up and out over night.
Be vigilant. I had the problem and wasn't vigilant enough. Would up running on only one circuit, and grinding the front pads to wedges. One piston pair worked, the other not. Put metal to rotor quite fast. $$$
Good Luck,
Bob
:>)
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