Where are you measuring the 'slightly warm' water?
At a faucet?
OR have you checked the temp of water that will come out of 'pressure/temp relief' valve (in outside compartment.....turn off water supply after heating cycle and relief pressure by opening hot side at faucet.then you can open PRV and see how hot the water is)
If you are checking water temp at faucet...
Check that the water heater bypass valve is fully closed (ties water heater tank cold & hot lines together when bypassing WH to winterize)
Check that hand held shower(s) are valved out at hot & cold water knobs and not just on the shut-off on handle
If all checks correct and water from PRV is just warm and not HOT
Then the normal t-stat (under foam cover in outside compartment) is opening too soon or has bad connections. Those t-stats are pre-set to open at 140*F