sqt0341,
Anything "could" be. Part of the issue here is that it's very difficult for any of us to troubleshoot remotely and "blind". All that I can do for the present is what's already been presented, for what information we have from you. For good or bad, the actual hands-on trouble shooting is up to you.
As per the Manual test: have you tried (with key-off) to solidly "ground" the sensor wire to the engine block, then get into the car & momentarily turn-on the key to see if the TEMP gauge goes to below "cold".
Do this only long enough for it to get just to below "Cold", then turn the key back-off right away; otherwise, you WILL burn-out the gauge!
If it does go to below "cold", the gauge and wiring is probably O. K., per the maintenance manual. If not, you either have a wiring issue, or a bad gauge.
Then, try a matched "sender", instead of the switch; and, let us know what the results are. We may then be able to help better based on results.
Many of us will be more than happy to guide you along, as long as you provide specific questions dependent on what you "find".
Regards, JLB
55 Ford Crown Victoria Steel Top