Several of gas-fired Bosch heaters have a minimum-modulation of ~30,000BTU in, and if you cut back the HW flow too much it drives the output temp up to where the overtemp safety trips. The warmer the incoming water is, the more likely this is to happen. The work-around is to run higher flows of the hot side even as you mix in more cold water to keep the temp at the tap reasonable.
And yes, at the local mixer increasing the flow of cold water introduces a back pressure on the hot feed, slowing down the flow.





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