I have a 21 plate T8. I am able to hold the car in pure mode and it stays in electric mode as you described. If you push the pedal really hard when fully depressed it will “click” and trigger the ICE to start which is useful in “emergencies” when electric isn’t sufficient.
I have a Volvo warranty and frankly wouldn’t run one outside of it. I’ve done relatively few miles and had no ERAD issues, but aware others have. I’ve not heard of the oil dilution issues you mention.
Hope this helps
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