The probe is huge. Those tstats are not very reliable. I would start planning on a better replacement and keep that one as a backup. I like Herpstats.
The substrate over the uth should be a 1/4 inch at most.
86-87 is actually fine for a hotspot. I keep most of mine in the range.
Yes, heat fixture can such humidity but there are ways to defeat that like placing damp moss in the hides. A uth is for a hotspot and it's not designed or intended to heat the tank air. Many times a overhead heat fixture is necessary. Before I had a designated snake room I had a 100watt che and a 60watt bulb over my BP to keep things right. I like it cold so I had to add heat fixtures but had perfect sheds.