Standard Suburban Water Heater T-stat is set to OPEN (stop heating process) at 130*F.
It will NOT CLOSE (call for reheat cycle) until water temp drops below 100*F
No demand.......tank can take a while to loose enough heat and IF that Faucet DW is first using in AM is far from water heater it will take a quite a bit of cool water before the WARM water from heater reaches faucet. And then t-stat calls for heating.
Before any water is used...measure water temp from T&P Relief Valve after heater has sat overnight.
CAUTION: Water could be HOT
IF water is 'cool' (less than 100*F) then time for new t-stat
If water is above 100*F..changing t-stat is NOT going to change anything