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The sensor is located in the lower front grille, left side (driving direction). The sensor should be visible through the grille raster, there should be only one distinct component


Sounds like the temperature sensor is broken. A new one is $40-$55, and it's a 30 minute job to replace if you've never done it before (it lives behind the grill in front of the radiator). Not uncommon for these to fail on Subarus and give weird readings. Following Paulster2's comment, here's an image of what the sensor looks like; In this image (of a ...

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