Alright, just an update here in my journey. Pulled my valve and ultra sonic cleaned and lubed. Moves as expected and opens fully. I pulled my dash to replace the heater pipes and o rings as I had a drop of coolant leaking through my dash.
While taking my dash apart it became apparent very quickly about what was going on with my HVAC system. Firstly the foam which seals the various dampers in the HVAC system has turned to powder. Literally. You touch it and it turns to dust. So none of the dampers had been sealing. The fresh air/recirc damper wouldn't seal, the cold/hot damper was not sealing... Etc etc. So, I took all of the powdered foam off, ground off the adhesive with a brass wheel, painted the surfaces to stop surface rust and applied rubberized HVAC adhesive foam in 8mm thickness matching the old application...
But. PSA here, there appears to be no prefilter, other than the squirrel fan and HVAC evaporator. There was literally half an inch of debris and detritus on top of the evap coil which had completely killed airflow. It was amazing any air was getting through at all. So I separated the clam shell protecting the coil and cleaned it out with a foaming HVAC coil cleaner and flushed thoroughly with water. Couldn't get it perfectly clean but it's waaaay better. Put everything back together. With the new foam dampers and the clean coil and heater core this thing blows heat like a brand new vehicle. It's actually remarkable. It also explains why my fan died as it was trying to force air through a brick.
So hopefully this can help someone else. If you have some time, live in a cold or very hot climate where you need your HVAC system in top shape, I reccomend this "mod". You can easily do it in a day taking photos and putting respective screws in labelled baggies etc. You do have to get your HVAC system evacuated but that's not an issue. The difference is night and day and I can actually defrost my front window when it's minus 30c.
If anyone has any questions about the dash removal, I've done it a few times now on my kzj78 and can walk you through any questions pretty easily. I can reccomend parts from megazip required and what to look for. It's a good time to replace your speedo cable, dash lights, HVAC cables, get your ecu refreshed etc etc.
Enjoy the weekend!