Reporting back for any who might be curious: with some trial and error of setting gradually higher service boiler temperatures, I found that with the brew boiler between 90-93 C, the max temperature the service boiler can be and hold temp is 142 C. At 143 and above, the abnormal swings down and then back up after a prolonged time creep back in, and as others have guessed i think there probably is some triggering of an over temp system causing the problem. However, so long as you keep the steam boiler 142 and below, it seems to be working beautifully (and making some gorgeously silky milk for latte art). Thank you all again for the troubleshooting!