Usually t-stats fail in the open position, due to spring weakening, resulting in too much coolant flow. Aka an engine that doesn't warm up properly. Under normal circumstances I cannot think of a reason a cooling system would be blocked so much to be a problem.
Different engines have the coolant temperature sender in different places, sometimes multiple sensors and the outputs are inserted into an algorithm via ECU. They can calibrate them so that even if the sensor is on the hot-side radiator hose, the readout can be adjusted for what the cylinder head/block would be based on a table.