Thermostat Controller: What am I missing when using averages?

The heating setPoint gets lowered well before the heating average closes in on the SetPoint. What am I missing here? Thanks!

From the screenshot you can see that Heating SetPoint and Current Temperature of the physical thermostat have both reached 68 so heating is turned off but the Current Temperature of the Controller is still 64.7. I would assume the heating SetPoint of the Thermostat would keep increasing (basically heat stays on) until the Controller Temperature closes in on the Hysteresis value.

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