Wanted to send a quick update. To help me diagnose the issue I have essentially replaced every cooling hose with clear tube and replaced the sea strainer. All the changes seems to have helped. I was able to get the boat out this weekend an it ran between 175 and 191 the whole time we were out. I even towed the kids in a tube for a while. I'm running the Stant thermostat so I assume that will account for some of the warmer than usual engine temps. Interesting thing I found out is that we are still sucking air into the system but when I search for a leak I found that the air was coming in from the intake port on the bottom of the boat. I guess as we skip through the water we take on some air. But it also seems to happen at heavy throttle on a holeshot. Does this seem normal? Would you expect to be completely airless? I have attached a few pics to show the hoses and the air in the heater line.
Good news is the boat seems usable again. Bad news is I'm not sure I have the issue completely licked.
Thanks again to everyone that helped out!