Update:
Turns out I am not going mad.
I decided to exclude the fact the part was...somehow wrong. I rang a few other parts suppliers and they confirmed the part number I had on my box matched the ford code for the part.
But, to triple check I rang another local company and got them to order the part in, and went with the old part, my new part so I could compare it with their part.
And what do you know, ....they are different.
New part on the left, the "wrong" part in the middle, and the old part on the right.
Visible differences are the washer is much smaller for a start, and it also has the same bevel end that the original part does. The one that does not fit has a flatter end.
Just tried to fit it now....and it went in perfect.
However, my only concern is that the cable has an issue as while the sensor reading is now lower. It's still not matching air temp.
When I removed the sensor it was not showing "open circuit" default of -40c.
I assume this suggests there could be a further wiring fault?
Could it be the end connector block giving some sort of shorted reading?
If it is the connector block....then....in theory....if I remove it and just have the two bare wires....and I get a open circuit reading, that would diagnose it as being the connector wouldn't it.