1) you're asking for issues if the water filter is spun on so tight you can't get it off w/out the filter wrench. It should go on til it seats, then just a bit more for the o-ring to compress. If its barely on & doesn't leak, that's perfect. Lube the o-ring w/
Dow-Corning #111 silicone lube.
2) no reason for the engine temp to go up due to the DPF. Whoever is telling you that doesn't know how the cycle works. If the DPF goes into its clean cycle (regen) then the ECM sends a small spirt of diesel into the cylinder just as the exhaust valve is opening so this teeny bit of hydrocarbon fuel goes unburnt into the exhaust stream (on very large engines there is actually an injector on the DPF or just upstream of it for this purpose). When this fuel hits the catalyst it combusts, sending exhaust temp up to 1100 degrees and vaporizing the soot trapped in the DPF. As you can see this is all downstream from the engine and its coolant. I have the ISL but it is the same design for the DPF cycle as the ISC. I learned all this by drilling into Cummins' engineering staff prior to purchasing the DPF engine because I needed to know whether I could take this coach to Mexico where there is no ULSD. Mine is a side radiator and I have never seed 205 degrees.
You may need to clean the radiator or have the fan actuator checked. if you have rear radiators, it is common for engine blow by to get trapped on the fins and collect dirt, clogging up needed airflow space. You can eliminate that by trapping the blow by more efficiently in a large Pepsi jug filled w/copper or stainless sponge, but that won't clean an oily radiator.