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So, "Y" is used to control HP or Oil, based on -12C switch.
The aux heat in the tstat is unused.
A second safety assures that the compressor is off if OIL is supplying heat.
If HP is selected, the -12C switch can cycle the compressor without the required delay. If that -12C switch was instantaneous, then wind would make the compressor chatter. If it actually had some thermal mass, then it would not, but it would not be measuring air temperature.
Any specs on the -12C switch?