Update.
After driving 30 miles, all the warning lights are back on. We dropped the car off at the dealer this am. Dealer says both rear wheel speed sensors have failed and that is causing all the faults. I find that hard to believe. I can see some of the faults being related, but the air bag warning light and the tire pressure warning light coming on because the speed sensors have failed seems like a stretch. Also, the car has been going into limp mode over the last week or so from time to time. Restarting the engine clears the limp mode.
The dealer wants $606 to change both rear wheel sensors. My cost on them is $21 each. If it was a customer's car, I'd replace the sensors, but advise that it may be ECU related. Just because the speedsensor code is being recorded, does not mean they are both bad.
I asked the dealer if they replaced the sensors and the problem still exists, what happens. Service advisor said, if they misdiagnosed it, they'd apply the $606 towards fixing it properly. I am not sure what to do.
If I pick it up and pay the $130 diagnosis fee, and replace the sensors myself, I have about $160 into the repair if that actually fixes it. If not, which is what I suspect might be the case, I am looking at an ECU or some sort of CAN communication problem they are missing. If I replace the sensors myself, if there is any chance of VW Goodwill, the car has 84,000 miles on it, has always been serviced at the dealer we purchased it from and not sure if I could claim power train warranty, just because you can't drive it in limp mode safely. Any comments appreciated. Thank you.