VW temperature display

ambient temp sensor outside faulty or the interior display

or both

check near front bumper for a tiny black sensor somewhere near number plate the sensor seems loose or bad connection on wire ,not 100% sure where sensor sits but pretty sure its a bad connection on plug to sensor as it is a common prob on bmw when sensor loose /bad connection show minus 40deg when its hot outside and display plays up vw polos have same prob

With any electrical problem always check the fuses first.The location of the fuse will be in your owners manual.

clock, radio & DIC display is out. What do I need to do to fix this problem? Is it some kind of fuse?

The overhead console is quite prone to internal failure. Dim, intermittent, or dead displays are a common symptom of an internal failure. We offer a reasonable repair service with a lifetime guarantee. Check it out: www.autoclockrepair.com

The 10 amp IGI #2 fuse controls several other components including the dome light, cruise control, and brake lights. If these are working but the compass is dim, intermittent, or dead then the control module has gone bad. You can get a replacement from toyota but I believe it costs $500+.
I offer a repair service with a lifetime warranty. Check it out:
www.autoclockrepair.com
thanks!

Check the wiring plug that goes into the back of the mirror. They come unplugged sometimes.

sounds like the bulb has burned out they can be replaced

For general awareness, the outside air temperature sensor is located above the inside mirror.
Try to reset the temperature measurement unit: 1. Switch engine on. 2. Press and hold clock minute (min) and hour (h) buttons simultaneoutly longer than 3 seconds. The display will show new temperature measurement unit. 

To change the clock between 12 and 24 hour display with the key off press and hold the hour and minute button at the same time for approx. 3 seconds or until the display changes.

Tp change the temp for C to F do the same thing with the key on.