Regarding the 3.5 lb. check valve bypass, I believe that it will work as described, however, on the Pentair Ultratemp (Heat Pump), they use a 12 lb. check valve bypass, which I think is incorrect, but maybe I am missing something.
I would recommend that you confirm with Pentair that a 3.5 lb. bypass would be correct for the MasterTemp before you use it.
I would also verify that the flow gets to 40 GPM, or higher, in the heater before the 3.5 lb check valve begins to bypass flow around the heater.
In any case, using the 3.5 lb check valve is at your discretion and risk.
The flow switch can help ensure that the flow is adequate.