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Hello,
As the others have said it is definitely your heater core.
Exact same thing happened on my Daughters car.
I don't think Volvo could make it any harder to R&R this heater core if they tried.
I was told Volvo repair shops charge about 10-11 hours labor plus parts.
I have no experience so can't recommend it but have read about what's called the "chain saw" method of replacing the heater core.
You basically cut open the side of the heater box, slide the old one out, slide the new one in and epoxy the side back in place.
You can do a search on this replacement method but you are on your own as I have no first hand experience so can not recommend it.
Good luck which ever way you decide to go!
Dale
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