...No, it's basically supposed to turn power on and off to the heat tape to keep it from getting too hot or too cold. So when the light's red, it's going 'whoops, too hot, turn that off', and when it goes green it's going 'too cool, turn it back on'. Cycle and repeat. That's kind of how thermostats on heaters of all sorts work.
.2 degrees fluctuation's WELL within the range of fine.
**ETA**: (Never mind, I can't read. Whoops)
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