An overheat warning is for overheat of the engine shroud, not the engine core
My 737 NG AMM says otherwise..sensor is by the engine core.,on the high pressure turbine case.
Rest i agree.
You wrote your AMM says otherwise, than what you quoted. The poster wrote overheat is not for the engine core - "otherwise" must then be that overheat
is for the core - which is a load of nonsense.
Just because the loops are located near,
but outside, the core, doesn't mean that anything going on in the core is being monitored.
In the engine core there is both heat and fire, and you don't really want to put either out, unless parked at the gate.