I've tried at least 2 bios versions. OP has the x870e. I have the regular x870. 7E51v1A40 is what the board came with. 7E51v1A65 came out on the 7/18. Have updated the chipset drivers and anything else i could get my hands on. Same issues. I didn't want to give my money to ASUS for this one but I need a different board. Looking at both these forums and Reddit, this has been a known issue for 6+ months. I don't have faith at this point that MSI will resolve this.
To clarify my testing, its not just the CPU Temp sensor that seems to freeze. MSI Afterburner(what i use for on screen info during gaming) and other monitoring programs can access fan speed data from the sensors, power data, etc. When the CPU temp sensor stops updating, the fan controller on the board stops updating and fans get locked at speed. Monitoring programs show that CPU ratio looks like its still moving. CPU power monitoring goes to 0 watts. Meaning its not able to read that data at all, or is interpreted as the whole CPU has "parked". CPU still works as normal as long as it doesn't thermal event. My 9950X3D did that twice because the fans got locked low. The 9800X3D I got for testing i have limited to 80C TjMax. It can still thermal event but takes much longer to do so. Once the board controller for this gets hung, rebooting can clear it. But if you try to shut down, after OS is out and BIOS should be releasing the relay holding the PSU on, it doesn't. It'll sit there forever without a hard shutdown. CPU ruled out, memory ruled out. PSU ruled out. Tried my old and trusted 1050w seasonic before getting a atx3.0 1200w seasonic for the new gpu. Fresh as freshest install of windows you can get. Also tried running with no other apps that can access temps or sensors on. Still happens just harder to detect since the only temp sensor i can see then is the motherboard 2-digit display.