I know this can be controversial, but think about filing the block from the two drain holes in the bottom/ sides. Drill and tap to 3/8 pipe, and use a #8 fitting. I've done this for years, and never had a problem. More even heat distribution through the block, and it keeps what crap might be in there, in suspension. I've never had a block fill with sand.
Also, you really don't need a bypass valve, just run a regular 1/2" NPT water pressure regulator, and save some plumbing.
Just a thought.
Sanger Rat...I like your signature.