Spikes even up to the low 70s are perfectly typical of most recent Intel CPUs.
The polling rate on the sensor is catching the CPU when it is under load, even briefly. Your cooling is all about sustained cooling, so the whole CPU can get a lot warmer for a lot longer, which makes the CPU cooler warmer, the warmer it is the better heat exchange it will have with the cooler environment (to a point) You can't expect instant heat transfer from the CPU to the cooler, thus the spikes. If you put your CPU under a heavy load and it sustains an average below 80C, you are still well within spec for the chip. More than that and you need better cooling.
Kabylake/Skylake can ramp up very quickly compared Haswell and previous generations. So it runs up, does the work, and cools back down rapidly.
If you saw sustained high temperatures at idle, that would be concerning.
i7-7700k does run hot, but only because it is essentially Skylake overclocked just that much more. There is a price to be paid for the 4.5Ghz stock boost frequency. And, as usual, Intel has skimped on the thermal compound and its application, so some CPUs will run hot due to that. (Mine did, one core was significantly warmer than the others until I took it apart and re-did the thermal paste)
Even so it perfectly handle short term spikes, I think I saw a 91C once.