Burnt Wire Smell. Idiot Temp Light Coming On and Off

[1972BlueC20]

Been smelling a burning smell lately. Kinda a mix between burnt wires or plastic. My idiot temp light keeps coming on. Sometimes even when the engine is cool enough to put my bare hand on the valve cover and hold it there so it's not over heating.

Used my digital laser temp gauge. Cylinder heads are around 170-180 degrees. Exhaust manifolds around 450-470 degrees. Top radiator hose 160 ish. Bottom hose 125-130 ish.

Engine bay does feel really hot, like more than normal just feeling wise. Seems to be emanating a lot of heat. Coolant is clean, bright green and full.

My temp sensor is not the correct sensor. When I did my engine swap a year ago we had to find a sensor that would fit the vortec heads. It's been working (at least no triggering the temp light on the dash). I'm thinking maybe the sensor has gone bad or isn't reading correctly.

Ordered a full cluster gauge. It's on the way. Fixing to do the idiot to gauge cluster conversion. When I do, I will be using the correct AC Delco sensor in the cylinder head (getting it turned down right now from 1/2 npt to 3/8)

With the burning wire smell, is there anything I need to check or be concerned about?