Even on top 94 is way too hot. But yeah you want to think worst case scenario with heat.Yes a CHE will dry it out. Any heat source from above will to one degree or another. I usually mount the probes a few inches below the CHE to measure the output but I adjust it based on the temps from a temp gun or thermometer at the substrate layer. Again measure the hottest place affected by the heat source so this case it would be on top of the substrate or object directly below the CHE/Bulb. Also it looks like you have pretty much the whole lid covered. You need to leave some room for air to be able to circulate in and out of the cage. Mind you I don't have a tank so someone with more tank experience may give better advice.