sorry I don't have a better technical explanation than this:
there are four wires that come off the sensor.
one pair sends a signal to the dash (or whatever feeds info the dash), the other pair goes to whatever is controlling the air/fuel ratio.
it seems one set (no i don't know if there are two different sensors in the actual CTS, as I have never opened it up) flakes first, and usually its the one that goes to the A/F ratio.
Symptoms of this are that the car doesn't turn over and start right away in cold weather, because the sensor is sending the temps to the controller so the A/F is wrong for the air temps.....after like 20-40 cranks or so the engine is warmed enough that the wrong reading no longer matters and the car turns over and starts.
based on what you are seeing, it seems the information going to your dash is the screwy data
for those of you who know more please feel free to correct me.