After a 3rd inconclusive repair attempt on fan over-speeding, this time at an Apple store, not 3rd party place, machine returned after analysis and testing with no repair made. They did wipe the hard drive in case that might've been an issue, but the Fan resumed over-speeding behavior with a few days. Out of desperation, I re-installed the Macs Fan Control app, which previously seems to have worked, but gradually became almost totally ineffective, and the fan has only surged occasionally. Not sure if MFS is the reason or not.
Spoke with AppleCare, and told them there's no point me hauling back in for repair again, unless they agree that if they can't nail the problem, they replace the motherboard, which seems to have been an effective solution described not only in this Mac Rumors thread, but other discussion groups. AppleCare not only agreed, but then added that they would otherwise replace the machine.
Music to my ears, and what I initially expected from Apple. This is a refurb 2020 27" iMac, under warranty until Aug 23, which covers either repairing the machine, or, if unfixable, a trade-in deal, (not at replacement,) on a similar refurb unit, which would only net me $750 for the old machine. (Which I paid almost $2600 for.) The return policy was only in effect for the first 2 weeks of ownership, and this issue didn't materialize for a month or two after purchase. No one mentioned "replacing" until that last AppleCare discussion. It took three repair attempts and numerous phone calls over several months to get this far.
I'll be taking it in this week, hopefully for the last time. Let's see if they deliver: repair, or replace.