I'm guessing that when you turn on the AH and call for heat at the same time, the coolant that circulates is below the dewpoint temperature of the indoor air. This will slightly cool the indoor air and force the moisture out of the indoor air. Creating fog.
Maybe try turning on the diesel AH for a full cycle, about 20 to 30 minutes, then turn on the thermostat and call for heat. The AH will then almost immediately circulate hot coolant not causing condensation of the moist indoor air.
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