stupid question... why would the outside temperature sensor have any bearing on the operation of the inside climate control?
It looks like the problem is fixed, but wouldn't the interior have its own sensor to monitor temperature for the auto setting?
As OP indicated there was no faults (DTCs) detected by the climate control software, So, if the set point cabin temperature is above the cabin temp sensor value and the outside ambient temp sensor shows outside is higher than the set point temp, the algorithm will use outside air to bring the cabin temp up to the set point. Since the outside sensor was giving a faulty high reading, the cabin was not being heated. Generally, if such software detects that the outside temp sensor reading is bad, the algorithm will use a backup sensor like perhaps the intake air temp reading in place of the ambient temp sensor and throw a DTC.