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My friend has had the same problem with his 2.1 KB GT. As far as he can tell its because of his bigger lower pulley spinning the water pump to fast. He recently ordered some new silicone hoses so we'll see how those hold up.
This was another idea I had. I originally thought it was lifting the head but the car doesn't overheat and when diesels lift heads they blow coolant out of the overflow cap. .