Correct it is not normal. After all this time and all the vehicles Toyota has made throughout the decades, why now did they decide to make a transmission temperature gauge so sensitive in its readings. I’ve never seen a gauge go above center position under normal on road or normal off road conditions. Now for gauges that actually give a temp readout I have seen them fluctuate as high as 235 degrees but that still would equate to the center position of a temp gauge. Toyota has a design flaw and many people are pointing it out across several models and I won’t make excuses for Toyota.
Really. New driveline with FULL-TIME 4WD, a KO clutch, hybrid motor, torque converter & 8 speed transmission. I think most of us have never had that system before, unless you already have a hybrid Tundra or Sequoia - & even they don’t even have Full Time 4x4. I’m very glad the gauge logic isn’t to create a static bar like many vehicles, & it actually fluctuates. Ask current F150 owners about their OD AT failing & their gauge never moved.
So rear tires are slipping traversing off road - what do you do?
Drive it in 4Hi?
Slow down?
Shift to manual mode to hold a gear?
Lock rear diff?
What about center diff?
Switch to 4Lo?
Answer is probably whatever is necessary for the conditions. Transmission gauge fluctuations are telling you what stress your transmission fluid is under, so that you can change your driving behavior.
We go out & change tires, ride height, etc. to go off road. Why not add a BT device to your OBDII & get an app to monitor your actual transmission & engine temps if you’re concerned? Or buy a supplemental transmission cooler?
In the name of off roading LC owners are proud of their mods - taking air dams off, adding lights, winches, tires, rims, springs, lowering diffs, correcting track bars. Seems like adding gauges or improving cooling isn’t the strangest idea. Pretty sure the Jeepsters in the audience are familiar with those mods.
I haven’t seen any actual transmission temperature readings when they’re having high gauge readings. Love to see Toyota do a digital reading above the bar on all gauges. If you’re having cooling issues under how you drive, add a cooler.