Probably because you have no power to the duovalve, which controls the water flow to the heater.When this valve loses electrical power it defaults to fully open.
Check none of your fuses in the main fusebox under the bonnet have blown,(fuses 3 and 11 and 14 used in heater system).
i get the same problem on my W203. if i turn the dial from cold to hot it doesn't always work the first time, but when you do it twice it works for me ?
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