G38 wiring

I bought a 1999 beetle 2 L, only shifting first and second gear no third or fourth. I am checking the G 38 speed sensor, and it appears someone has rewired this. There is only two wires going to this connection and a third black wire has been bent back and taped. Does anyone know what the previous owner may have tried to do here? I have pictures but just cannot post them from my iPhone for some reason. . Thanks for any help to a new beetle owner.

Back up a bit.

This is the AEG code gasoline engine bolted to the 4 speed 01M autobox?

Are there any faults in either the engine or the trans controllers?

Does the PRND32 all light up and work normally?

The G38 only has two wires, the third one is just a signal shield wire, and does not actually go to the sensor, but to the harness cover.

It is a gas, 99, Beetle that only has 1,2 nd gear only , was told to change g38 , called VW, they told me it’s a 3 wire, 3 Plug Sensor, I checked it, there was 3 wires but one Black taped bent back. I’m sorry, I’m not well versed on my new VW , and tried to get codes with a wifi to Android VW code reader and can’t get it to work. Thx .... I’ll bite the bullet and tow it to a VW dealer, everything here is just to complicated for me. Appreciate your time.

To answer your question, nothing lights up on prd32, but I can shift it manually 1-2 but that’s it. Stays in 2 nd. VW parts dealer gave me a 357-972-753 plug ( with 3 wire ) and a 3 wire AH 012 H03 Speed Sensor ( g38 )?
The speed sensor I am replacing was a 2 wire. There are the 3 wires you talked about coming to the sensor female plug, red/ green/ Black . I just don’t know the order to put them in the plug. So confusing.