Earls makes a lot of different hoses. That looks like their pro-lite 350 hose? Irrelevant, but even that hose is rated for vacuum at high oil temps. Unlikely that your hose is collapsing, in my opinion.
Oil that has been aerated will cause false oil pressure readings. The air bubbles in oil will often cause the oil pressure to read fine, because air is compressible, but in reality it’s not fine, and oil volume, not pressure, will be compromised, causing problems. However since your oil pressure gauge is bottoming out with heat, you have other issues.
What kind of pressure do you have at cold startup/idle?
Was this drysump setup designed by yourself, or a dealer?
Have you inspected your oil filter element for debris during this issue?

Dry sump lubrication systems will ALWAYS have air entrapped in oil from the return (scavenge side). By the very nature in how dry sump systems work, the scavenge pump (or pumps) are always larger than pressure pump as they have to account for this increased volume. Return into tank is typically tangential to tank and then run through screens in tank to de-aerate the oil. Unlike the pressure pump side, the scavenge side can and will also be exposed to air during hard cornering, acceleration, braking, etc.

LS7 is a relatively simple dry sump - single pressure and single scavenge stage. Racing dry sump systems will have one pressure stage but many scavenge stages. Most still pull from sump, but they can also pull from heads or valley or turbochargers, etc. And they will also have entrapped air in return oil. The purpose of dry sump tank is to de-aerate the oil, and provide a supply of oil that will ALWAYS cover the pickup location for pressure stage. Tall small diameter tanks are far superior to being able to do this vs, wide, long and shallow oil pan sump.