What type of water neck/t-stat housing are you using, and how is it plumbed? If you are running a t-stat, you need a "4-port" type t-stat housing so the water continues to flow even when the t-stat is closed. If you are just using a "jet boat style" water neck with 2 dump fittings and a t-stat, you will build up a large amount of pressure in the block when the stat is closed and have "hot spot" where the water is starting to boil. I can't explain why this problem never occurred before...Just an opinion.
Just for a quick test, you may consider drilling a few bypass holes in the outer rim of the t-stat and see what happens.