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Horizontal Draft Diverters

I was on a service call today and saw a Hydrotherm VGA-350-INT steamer w/ bad t/stat. After replacing t/stat I fired up system and noticed some bubbling paint on rear sheet metal panel and the rear and top of the boiler was very hot to the touch only after a few minutes of operation. Upon removing the back panel I was stunned to see that the rear burner base was basically melted (where the rear of the sections sit on the base)! I shut unit off and removed all burners and found 4 with broken slots towards the rear. The boiler is nat gas, all near boiler looks good (3" header, 2" drip, good "A" dimension), and looks to be only a few yrs old. The only thing that I noticed is that there is a 10" Horizontal Draft Diverter as opposed to a vertical. The ceiling height in basement is pretty low. Could this be causing the excess heat build up? Any thoughts are greatly appreciated. (Checked chimney and looks good)

Thanks, TJ
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