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Yes, the liner needs to be pulled in order to be properly wrapped in an insulation blanket. Note that unless the exterior chimney has 1" or greater clearance from any combustible all the way up, code requires the liner to be insulated. This together with the an extension could solve the problem if it's only under some conditions that the draft stalls.
If you are looking at burning low and slow, a hybrid stove may not be the best choice. A Blaze King insert is a pure catalytic design which can be run like that. There is still the same caveat of having specific minimum draft requirements for the cooler flue gases that occur when burning like that. Otherwise there is a chance of backdraft when the chimney is cold.
Just a thought, have you considered replacing the catalytic combustor? If the dealer has a spare, he may be willing to let you try it out. It the cat has exceeded 1600F multiple times, then the wash coat may have flattened and lost surface area. This could explain the "worked great first year..." issue. Not familiar with location of cat therm hole on that model, just a thought.
you know I dont see one installed for the life of me. I checked the owners manual where it said it should be but its not there. It kinda looks like this one may not have one
you know I dont see one installed for the life of me. I checked the owners manual where it said it should be but its not there. It kinda looks like this one may not have one