Is there any hysteresis to the flow switch? (e.g. it takes two faucets to get the unit to turn on, but once on the extra faucet can be turned off and the slower flow will keep the unit running)? A quick read of the manual seems to indicate that.
Something to try at any rate: Turn on two faucets to get it running, then turn one off and see if it stays on heating the water.
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