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Failing brake switches are common in other Peugeot models so it's not beyond the realms of possiblity they do in RCZs.
In 407s, from memory they fail in the on position. So the brake lights are permanently illuminated.
Whether that's the case with them all I don't know.
I never really noticed with mine, but I'd assume your temp gauge is yoyoing because the cooling fan is running fast.
Is the code from Planet or a generic reader?
Ignore me. I haven't had an RCZ for a few years, and for some reason my cold addled brain thought it was a cable. Then I realised they weren't made in 1984.
Is bleeding it an option? I know you can on other cars, just over fill the clutch fluid reservoir and then bleed the slave.