DS18B20 freaking out / continuously reporting 85°C

Quite frankly, when using $2 sensors instead of genuine $10 sensors, it might be worth simply implementing filters to throw out the “power-on” state.
How often is it really going to read 85.0 or 25.0 exactly? Not often, I’d think, especially if the sensor normally returns decimals values to at least one place…

  - platform: dallas
    address: 0xd4000000108b9b28
    filters:
      - filter_out: 85.0  # 25.0 for some sensors
      - offset: +0.3

Edited because I actually realized some sensors have a different number to toss.

There is no doubt about this workaround. However, if you check the linked ticket, there is actually a technically clean way to filter those states correctly. Be my guest to post a agreeing response, hopefully someone will work on the esphome improvement soon.