What happens if you rev the motor to 2,000 RPM or above? Will the temps come down at all?
I had trouble getting all the air out of my LS3 also. What I did to finally get all the air out is:
1) Raised the front of the car about 1.5-2 feet on jackstands.
2) filled the motor through the upper radiator hose
3) then filled the radiator
4) Ran the car with the front end still raised and the radiator cap off. With my dual pass radiator is was super easy to look down the open fill and see when the thermostat opened. I allowed the thermostat to cycle open and closed 3 full times with the cap off and then buttoned everything up.
No problems since.
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