Joe,

Drill a 1/8" hole in the thermostat and you will get a little coolant flow to/through the head until the thermostat opens.

I have been doing this a 1960 261 for 47 years, and with a 1959 261 thermostat for 20 years.

I cannot see your 261 "bypass" housing, but I doubt it is the same as any housing used on any 235. I'll see if I can post some photos that were posted here when Deve was drawing/reaching some interesting conclusions regarding the later 281s' by-pass thermostat and housing.