I'm not sure its a dead end port as it has fluid at that port, I'm no transmission expert though. I came from an 03 with a NV5600 so its all new to me. When I ordered my gauges from diesel manor it was suggested I use this fitting for my temp readings. I see what your saying as far as the heat soak from the transmission case.
Its a dead end port, no circulation. None of the test ports have circulated fluid at them as they are a pressure point. They will read whatever temp the trans has accumulated to that point irregardless of what fluid temp is.
It could be higher or lower depending on conditions. With the probe in the hot line and TC locked you will generaly be within 10-20 degrees of coolant temp, TC unlocked could be 190-260 depending on load, grade, etc.
In the pan 35-40 gegrees less than coolant temp is average under no load. It could go higher if you are pulling a load.
Once the engine is up to temp pan or hot line temps with TC locked are going to run 150-180 depending on ambient. Almost never will you see a temp less than 140 as that is the minimum operating temp for ATF+4.
Your posted temps do not indicate an issue. However, you can over temp the fluid and see the trans light on the dash before the temps in those ports indicate a problem. The real issue is unless you used an extension, which will cause even lower temps, the probe could hit the servos behind that plug and really mess things up. IIRC, that is the intermediate servo you have tapped and you really don't want to have fix the issues messing it up will cause.
You will be surprised what the temps says towing in stop and go traffic with the sloppy stock TC. That 140-170 could easily be 210-240 in fluid coupling.
I use the hot cooler line to see the absolute highest temp possible and down shift manually according to that temp and time it is there. The pan temps in lockup generaly run 10-15 degrees less than the hot line and my trans runs 10 degrees either side of 180 depending on ambient. When those temps go out of that range I know something is up and can take action.