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Hello, the old system used low speed fan for heating and reserved high speed fan for cooling... this new thermostat is putting the fan into high speed mode in heating. If that is comfortable for you, there is no problem with it otherwise.
You can try either electric heat or heat pump mode...without liability, use the mode that works for you.
Regarding your side note: You need not switch to gas or oil, as those control algorithms are different than for electric or heat pump mode.... if that setting provides the function you want (low speed fan on heating) there is no harm in it. All of the furnace safeties remain in tact.
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