For a better understanding of how your AquaHot provides both heat and hot water, perhaps a cutaway view might be helpful:
CLICK IMAGE TO ENLARGE
Both the diesel burner (450D) and the electric element will heat the boiler transfer fluid that's inside the AquaHot tank. The the tank is the area outlined in the red lines. Both the burner and the electric element heat the fluid to about 195F; the diesel burner is way more powerful to heat the boiler fluid.
You can see the 'Water heating loop' that is enclosed and immersed in the boiler fluid. Any time the boiler fluid is heated, the water in the water heating loop will be heated. There are also circulation pumps that will pump heated boiler fluid through tubes to the various heat exchangers. Those heat exchangers have electric fans that push ambient air from inside your coach over the heat exchangers where the air is warmed and pushed out their vents to heat the inside of the coach. Those circulation pumps also push hot boiler fluid thru a loop imbedded in the floor under the tile to provide floor heat.
IF either the diesel burner or the electric element are working, the boiler fluid in the tank will be heated to ~195F. At that point, the electric element and the diesel burner turn off until the boiler fluid cools to ~175F. At that point, the electric element and/or the diesel burner will turn back o to reheat the boiler fluid to ~195F. The water inside the water heating loop will be heated to somewhere between ~195F and ~175F.
Once you turn on a hot water faucet, cold water will be pushed into that water heating loop as the hot water flows to the faucet. As more of that cold water gets pushed into the water heating loop, the boiler fluid will start to cool. Until the electric element or diesel burner starts to reheat the boiler fluid, over a relatively short period of time, the boiler fluid will cool to a point where the electric element and/or the diesel burner will turn back on to reheat the boiler fluid to ~195F. The diesel burner pushes much, much more heat back into the boiler fluid than the electric element.
If you've selected coach heat from the AquaHot through your thermostat, the hot boiler fluid in the tank will be pumped to the heat exchangers and/or the floor heat, further cooling the boiler fluid in the AquaHot tank.
The diesel burner pushes more than 10X the heat into the boiler fluid than the electric element. If it's very cold outside or you want a lot of hot water, you'll have much better luck using the diesel burner.
Also, when the hot water exits the AquaHot, it's about 195F (too hot for safe use), it passes through a tempering valve where cold water is mixed with the too hot water to result in safe hot water being pushed to your faucet. So, a couple of things affect the temperature of the hot water that reaches your faucet; the temperature of the boiler fluid, the temperature of the cold water that's being mixed with it, etc.
Take care,
Stu