Have you tried to plug in the heater without the ranco? As the others said, it does seem likely that the heater is broken, but you won't be able to tell now that the ranco is working. Even if the heaters thermostat is stuck on the tank will still not overheat because the ranco is doing its job and shutting off the heater when the proper temp is reached. But if the ranco fails and doesn't shut off the heater then I believe that you're still in danger of overheating because the heater will not shut off then either. The heaters thermostat should be set slightly higher than the ranco as a backup in case the ranco fails, but I think your heater will just remain on in that case.
It's working now because the ranco is fixed, but that's just masking the problem with the heater.