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When I last investigated, the operating lever on the valve that lets the hot water flow had slipped past the stop and so didn't then operate when the dash switch was on. I took the trim cover off to discover this, and so was able to move the lever back and then all was well...until this weekend when it has happened again. Murphy's Law operating again!
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This was also the problem on mine. Tried resetting it but it quickly returned to a position beyond the stop and then (on mine) the whole unit appeared to be in 'fault mode' and would not operate at all.
I think it's just a badly designed part. I (carefully) disassembled my control valve and noticed that, besides the mechanical stop on the valve case, movement seems to be controlled electronically by a 120 degree (rheostatic?) switch. If there's a failure in this switch then the lever can easily go past the mechanical stop and then get jammed (and then presumably report an 'out of range' signal to the control unit, resulting in the fault mode).
The good news is that it's a very simple unit to replace (assuming that the attached white plastic control rod is undamaged). Locating a second-hand replacement is also easy (apparently used across the VAG model range and possibly by Porsche too, albeit with differing levers attached - but this can easily be swapped over). However, obviously you need to be aware that, although such a second-hand unit might look OK, it might have exactly the same problem! I took a chance and bought a newish second-hand one (after carefully studying the pictures) and I'm happy to report that the whole unit is now working perfectly again.
One thing I noticed on mine was, besides the VAG part number, there was the manufacturer's (Delphi) part number. My original unit was 52411483
R05; the 'new' one was 52411483
R06. I guess the R number refers to 'revision' and you can perhaps deduce that the manufacturer is aware of the design problem with the unit and has tried to rectify it, several times ...