quote;But it is interesting that 12 gauge copper thhn has an ampacity of 40 at 90' C.....
When you look inside that dryer or stove, you will notice the wiring will be 12 gauge.
But you will also notice that it has an "asbestos" or similar covering on it. Even water heaters have #12 for 4500 watt elements, but you will also see that they are very short runs. The original circuit should NOT have needed 12/3 so the question might be irrelevent. 90 C. is 194 F which is a bit "warm" for a branch circuit.
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