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Final Update:
They finished work on it this morning before I could get there, so couldn't see it up on the lift with the belly pan off to see routing.
They did save the old pigtail and wiring to show me though, and sure enough it had been completely melted through lol.
On the drive home everything drove/acted normal again. Obviously no engine light or decreased power, and I put it through it's paces to make sure.
Engine temp back to normal as well. I even repeated my work -> home drive (this time with the engine starting out fully warmed up already since I drove there from the dealer) and temps are exactly what they usually are/should be.
So, for anyone curious, the answer seems to be "Yes, when timing is pulled due to (fake) knock, it can potentially raise running temps".
Although I couldn't see the routing myself, the tech said he A. Routed it even further from any/all heat sources compared to stock routing, and B. Added additional insulating tape just to make extra sure. They are warrantying their work for 2 years (even with my headers), too. So I'm fine with the higher-than-expected labor cost.
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