A few things from a fellow enthusiast behind enemy lines (California).
1). You were lucky to get by the visual inspection with the anti foulers. The rule of thumb is you cannot modify anything between and including the MAF housing to the rearmost O2 sensor. You found a lenient guy, stick with him.
2). The foul smell mentioned is just a gas smell. But it does get bad. And isn’t the healthiest to be breathing. It is present with bad cats because they are underperforming and not burning off the gasses. It is present with a test pipe because there’s no cat to burn off the gasses.
3). As far as passing smog with a tune, that is vehicle dependent, and I don’t know how the B8 reacts. I was able to pass my Subaru XV Crosstrek with a custom tune. But I know of other Subarus that have been caught. Kind of a crap shoot until the community can figure it out.
4). My suggestion would be to get a high flow cat for $350 or whatever, and when smog time comes around, reach out to the local euro community and find someone that will loan you their stock car for the duration of the test. It’s pretty common around here in SoCal. But a new cat is probably at least $1200. And you cannot legally buy a used cat from any shop in CA.
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