Wow - - 6" - 8" groups? Uff da! I think there is definitely something else going on here besides barrel heat. I did have a cheapie Bushnell 4x go south on me recently after 20 years of intermittent service (never used it on the 742 though.) Something is rattling around inside (bad sign) and the windage is no longer adjustable.
A thorough barrel cleaning to get rid of copper buildup, a check of the crown for nicks or burrs, and close inspection of the scope mounts is in order here. I used to have the cheap, aluminum see through mounts on my 742, hoping I could use iron sights if I was too close for a scope. Never had cause to use them, and when I got old enough to give up on iron sights I replaced the mounts with solid steel Leupold mounts. I was shocked to find that the screws that I had so diligently tightened at installation had loosened up over time. The new Leupold mounts are lower, came with Torx screws and are Loctited in place. The rifle LOOKS better now too as well as points better.
I'd also recommend trying several different loads; mine is REALLY picky, seems to work best with one particular factory load, never even liked any of my handlaods that much.
Good luck - - there's worse fun to be had than troubleshooting an accuracy problem (for awhile at least!)

Keep us posted as to how things are going!