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> Still end up with a two-party system
America moment
When government approval is low, below 75%, the majority party has a disadvantage in the election, as people want to vote them out for doing a bad job. They can still win if their district/state has a big party advantage. But if you replace those party loyalists with independents, they'll be heavily swayed by government approval ratings.
Perhaps the closer election results you mention from 2060 to 2080 were due to the government achieving a better, more neutral approval rating during that period.