Rav Shimon Schwab zt’l has an essay printed in one of the “Selected” books, I think it was Selected Speeches. (It’s the last essay in the book.) It was originally printed in 1962. He introduces (as a third option to answer the contradictions between goyishe history and Talmudic history) the possibility that Chazal intentionally hid the 165 years. In that essay, he seems to lean towards actually holding that way as well.
When it was reprinted in the Selected book in about 1990 he adds a post script that he has thought about it long and hard for decades since the original publication, and he has decided that he believes be’emuna sheleima in the counting of Chazal where they state that Bayis Sheni stood for 420 years. He trusts that just as goyishe historians have revised their theories about numerous other topics, surely they will here as well, and the version of Chazal will ultimately be proven correct.