If the water pressure drops slightly the "anti-scald" device kicks in to prevent you being boiled by the reduced flow.
Usually if someone turns on another tap somewhere if you are on shared supply.
Slowly turn the temperature down and see when it stops flucturating, is that now to cold?if so I suggest one of the elements is not working.possible cause micro switch not working,If a triton the wiring could be burnt out.
Just a thought. Are you running a washing machine or dish washer or flushing other toilets while the water is actually running? I wonder if this could cause a fluctuation in the water temperature.
I would say that you're running the shower's thermostat on the cusp of it kicking in and out. Does it have a temperature setting as well as flow adjustment? If so juggle them until you get a constant temp.