There is a one-pager I wrote on that circuit...
https://imageshack.com/i/jwpiazzaturbowatervalveopg.
As I recall, a coolant temp sensor operates an air (vacuum) valve.
The air valve (vacuum) operates a coolant (water) valve.
I don't see why the pneumatics can't be omitted - ie, temp sensor controls electric coolant/water valve. IMO that will reduce emissions since IMO taping airflows causes step changes or changes air balance etc...)
I'm not sure if the latter was considered in my writings... Probably not in the original since it was a mere
quick analysis for a mate.
My conclusion was that it was a pedantic add-on to increase the (cold) turbo temperature quicker - ie, prevent cold coolant from cooling the exhaust-gas warmed turbo - and probably to reduce turbo wear (bearings & seals).
IMO if bypassed the emissions impact should be negligible. The slightly cooler turbo housing (until then engine coolant approaches normal operating temperature) does not impact combustion mixes & temps and is unlikely to alter exhaust temperature (eg, to effect the O2 sensor).
Plus the cat converter takes time to heat up (it's not a pre-heated type - at least not here; nor for any 1980's vehicle). Maybe that coolant valve is open before the cat reaches its operating temperature? (Not that it should matter...)
My other consideration - AFAIK no other vehicles at that time or soon thereafter had any similar circuit.
And Isuzu engines are clean burners as proven by the stringent Tokyo requirements. (Yeah ok, that refers to diesels, but Isuzu were the only diesels allowed and that was way before the regulations took effect re nano-particulate emission etc.)
Not that I'm an expert on the above, nor (may) remember details (accurately).
But if they are suggesting that an initially cooler turbo body effects emissions (and a still-cold cat doesn't?)....
Of course, if it is a Regulation, then it's a regulation - ie, the onus is on you to provide the proof.
It would be interesting to replace with a normal electric valve and removing/blocking the vacuum lines. Surely anyone can see that has no negative impact (even if it does require an Engineering Certificate - at least testing should not be required).
IZU069 - ISUZU means a lot to me.