Good news! I finally got around to replacing the speed sender as cactus_cars mentioned, and it seemed to have solve the issue.
The other good news is that if you have a 1.8t, you can reach down from the top and this seems like a super simple job (as seen here:
https://www.youtube.com/watch?v=mwvsviNEsNI)
If you have a 2.8 like me however, start praying... You can't reach down from the top so you'll need to pull off the drivers side wheel. From there you can see it right where it connects to axle, but releasing it is another story. There should be a small guard just above it that protects the inner CV joint, and that will need to be removed. Unfortunately there's 3 bolts holding it on, two are easy to get but one is at the top and NOT easy. I ended up stripping that because I couldn't see what I was doing because there's NO way to get two hands up in there as well as a way to see. If you are lucky enough to get it off, you can probably push the plastic tab on the old sensor down and spin it 90 degrees to remove it, but if you CAN'T get that guard off (I couldn't), you'll need try to use whatever you can to press down the little tab through the hole that locks it into place, then rotate it. Since you're replacing it, you can break the whole tab off entirely then just spin what's left of the sensor with your hands or pliers, but you still need to get the new one in, tab and all. It can be done! But it will need to be wiggled in correct under the guard and with the tab pressed a bit so it fits, all of course, with very little room for one arm, let alone two.
(if I don't come back here to write another reply, the sensor replacement was the fix!)
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