Hello Rich,
Waxstat thermostats that were available during the 1980s (quite possibly before then too) used to come with jiggle pins for the very reason of preventing air locks. When omitted, a 3mm hole is drilled with the hole positioned at 12 o'clock. This prevents air being trapped on the manifold side of the stat and subsequent overheating.
Given the time your engine has been running, that temp is far too high, so either the stat itself is the problem, air bleed hole or not, or the sender or gauge is incorrect. As Richard suggested, an infrared thermometer of something of a similar nature that will allow validation of your engine temperature.
Ron.