I live in north central ND, so I am no stranger to the low temps you mention.
I generally prefer block heaters if the particular engine can accept them, that being said, I have a diesel and a gas GREEN 4020, and have external "tank theaters" on them because there' no "core holes" in the water jacket in which to install "block heaters", and those heaters work well.
Quite a few years back, I owned a CASE 1370 and I installed a "Zerostart" block heater in it and it worked flawlessly.
NOT sure why you might be having issues, unless there's some defect/oddity in the area of the block where the heater goes.
(A friend bought the "1370" many years ago and used it hard and put it away wet, and now, with his failing health, I may get it back ago. Looking forward to that, but with the circumstances were different.)
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