Might be time to check another dealer.
The sensor would certainly control the fan. These 8hp70 transmissions run a little hotter than most, and it sounds like you are actually running into drivability issues, which may back up the sensor's reading. That temperature unfortunately is really out of line. Getting stuck in a gear (such as 6th) and then driving around with it stuck like that would absolutely cause extreme heat as the plates would have to be slipping the entire time from 0-40mph. One traffic light start would probably be enough to overheat like that. Positively can't drive it if it gets locked in a gear like that. I would think once the transmission locks in a gear you would get a CEL or a flashing trans shifter light.
For reference anything over 225 on these particular transmissions is unacceptable long term. I've heard of some guys hitting 235 on high HP srt8 Jeeps, but in general if you are seeing north of 225 on a regular basis without racing or towing something is wrong. I'd start getting concerned at 225 myself.
The fluid these ZFs use deteriorates at over 250. Meaning once it hits that temp it starts to break down and basically cooks itself and should be replaced/flushed out ASAP.
The max temp I have personally seen on mine (so far) is 208, and given the power adders I have I always have trans temp displayed on the dash. I'm sure during the summer months I'll see that rise a bit.
The cooling system for these transmissions is fairly weak. It's a series of controlled valves that are tied into the engine radiator chassis. As such, the engine actually contributes to warming the transmission up to operating temperature quicker. The down side is that there isn't really a dedicated cooler and the cooler never really drops below engine operating temperature once it's warmed up, and to put a dedicated cooler in would mean fighting both transmission heat and heat soak from the engine coolant. A 180 degree engine thermostat can actually help keep the transmission cooler...when everything else is operating normally, but not when fighting a shifting issue.
I would strongly consider getting your fluid exchanged and watch/feel your shifts. If they stop happening, you should stop driving. If the temp exceeds 240, you should stop driving.
Here is a similar/related thread. Later down the thread another DD owner seemed to have a similar issue hitting 278, multiple dealers, a few component swap, but no fix. Eventually it sounds like the transmission gave up before Dodge escalated.
Rumblings of a few bad sensors and ungrounded wiring harnesses in there, but no real smoking gun.
http://www.dodgedurango.net/forums/...eed-hemi-transmission-temp.html#/topics/15340
2016 Dodge Durango RT - Whipple SC - Corsa Exhaust - 505AWHP