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Since your WH uses an inside switch to operate in 120 volt AC mode on the backside of the WH located up high you will find a junction box..
Inside that box you will find a relay operated via 12vdc to control the 120 vac circuit to the element and thermostat ..
Inspect the relay for damage and the connections to the relay.. this is where the 120 circuit from the power center circuit breaker is fed to
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