If there is no cargo in it, it does not overheat. I've never noticed this in any other ship.
With cargo internal modules take a little damage every jump from the heat.
On the plus side it's cheap and has made back it's purchase price already trading between different markets and I'm half way to a 50.market network already. I won't have to fly it for long and I can shift the Engineered FSD V1 into a Python soon.
When I first started flying the Type 7 with no cargo I wondered what The Pilot was doing wrong in his video. Forward to time index 3:09
Source: https://youtu.be/TaSUc12ZiiU
This is what I get when loaded with cargo.