I would check if that Fan Control software did not hijack the control of the fan, then perhaps will try to use another fan control software. since the readings for all sensors looks normal it will most probably solve conundrum with those 1200 rpm.
As for those lines - most probably the case of that famous here "delamination issue" of the T-CON board, though, are you sure your Macbook haven't been in the warm and humid place before? I mean even if you have to go to Apple with this problem to replace the display assembly, I would still suggest checking the water indicators inside your Macbook first.