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ELI5: How are touch screens and computers in modern cars able to withstand the elements like extreme heat or cold and still function

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The same way electronics in any other “extreme” condition does (airplanes, military, spacecraft). Tighter tolerances for fabrication, bigger heat sinks, less power consumption, no battery in the same chassis, active cooling during use, etc.

SzethFriendOfNimi

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And to add to it materials that handle it better even if it’s not as pleasant.

For example the cheaper almost “plastic like” LCD on cars vs tempered glass (which has the added benefit of not being as reflective)

And by using simpler/larger components such as a lower density touch digitizer which is, as you mentioned, more resilient to extremes but also still cheap enough to produce and functional enough.