Thermostat housing, temp sensor mismatch

Well, given how our Jeeps are so well known to reject almost any aftermarket sensor out there (including coolant temp sensors) that aren't OE Mopar sensors... There's a good chance that your problem is that you didn't replace it with an OE Mopar part.
 
I recently replaced the water pump, fan clutch, thermostat and housing and hoses. I filled it with straight water to check for leaks

Oh, okay! I thought you were driving around with straight water. I was going to say, you'd be lucky you still had a running engine if that was the case!