why does an increase in volume lead to a decrease in temperature change?
Because,
Imagine you've got the same Mg and 20 cm3 of acid.
Now, if you take the same amount of Mg, but DOUBLE the acid, 40 cm3,
There is MORE acid than before.
So, a greater volume of acid with which the Mg needs to react, i.e double, so half the temp. change.
The TOTAL temp change is brought about by the COMPLETE reaction.
If the acid volume is doubled, that means the quantity of Mg needed is halved as well.
If the vol is doubled, the quantity of Mg ALSO has to be doubled to get the same temp change.
Greater volume, more time to react with all of it. So, only half the job done, thus only half the temp change.