OK everyone, my official update since my LC spent a week at the dealer for this issue:
Problem: AC is very hot on anything besides low
After the dealer techs took my LC apart and couldn't figure it out, they called in a master tech from Toyota corporate. He worked on it yesterday and my car was ready today. That's all they can tell me until they get the master techs notes some point in the next week or 2. I will share those once I get them. Apparently he just shows up, does his job and leaves without talking to anyone.
I am suspicious that since the temps here in DFW have risen from around 35-40 to 50-55, that it is some sort of ECU/sensor issue that wasn't resolved. That maybe the master tech just didn't notice any issue and didn't fix anything. Again, I will know more on this once I get the notes. But I feel like we have all been noticing the AC issues more with the cold front that has been sweeping across the country so perhaps it fixed it self with a little higher temps...
performance after repairs: I feel sort of like he just moved the needle at which the heater kicks on BUT my AC is definitely now way more responsive. 60-65 is pretty cool but not ice cold. 65 feels pretty ambient to me. I start to feel some heat at about 67. While 70+ is definitely hotter than whatever temp you set it at, it is not MAX heat like 60+ was before. In other words, if you set it to 75 its probably a good bit hotter than 75 coming out BUT it gets hotter the more you turn it up beyond that meaning its not cranking out max heat at all at 75+ until you actually get up to the max heat of 90 or whatever it is.
Until I know what the master tech worked on and have his notes, I am not going to make anymore complaints with the dealer. it is much better than it was before although not perfect.