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your bouncing is due most likely to your comtrol box type perfoiming after glow on the glow plugs for approx 1-2mins after startup. And No....31.8 volts is to high. It should be @ 27.5-28.5, just enough to get it into the white tick mark in the green zone....you regulator/gen is toast.
Simple....the regulator failed. It's ok to start the truck to at least get an output reading, but did you attempt to turn down the output?...remove the Allen head and a screw driver to see if it will adjust.