Danfoss Ally thermostat living its own life

Actually you can’t.
The values reported to HA is in steps of .5, but internally the steps might be lower.

My goodness, that sounds complicated! Is that really necessary? In my opinion, it shouldn’t be necessary - that’s the whole point of a thermostat: to keep a constant temperature.

And it is. The problem is that the Danfoss TRVs have an internal program to guestimate the settings to keep a stable temperature in the room, but the thermometer placed in the TRV is flawed, due to it close proximity to the heating source. The better option is to have a room thermometer placed centrally and that is the cause if the problem. Danfoss only accept its own devices as a replacement thermometer in its internal programs.