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Without enough transmission fluid or effective fluid, your transmission will start acting out. The ideal fluid temperature is under 175 degrees, but as fluid ages it starts to break down and lose its capacity to cool down the transmission. This is when transmission overheating occurs. At 220 degrees, varnish forms.
Cold engine oil causes excessive frictional drag on the bearings and cylinder walls. A quality conventional motor oil will tolerate oil sump temperatures of up to 250 degrees, but starts breaking down over 275 degrees. The traditional approach is to try to hold oil temperatures between 230 and 260 degrees. Even on a short-duration, drag-only combo where oil is frequently changed, I would not want to routinely see under-200-degree oil temps.