Yea, that is the exact same stuff I used on my O2 wires. They still cooked and I had none of the wire exposed including where the wires enter the sensor. Friends used the same insulation with the same effect. It just gets so hot in there that even that insulation can't stop the effects over a long time. I would probably weld in a new bung further upstream near where the upstream O2 is located and then install the wide band there.
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