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Are you sure the computer is seeing the VSS? As in you are on that parameter itself and you are getting the good signal? I ask because the signal comes from the VSS and the wheel speed sensors in the computer. If the VSS is for certain good and not dropping out, then there is a harness issue between the ECM and the cluster. The ECM could be sending the signal, but the cluster is losing the signal and returning that to the ECM which will throw the code.
CLICK HERE for the diagram to check that circuit.
2 other issues are the signal can have "noise" where it will still read, but drop off for a milisecond and come back up to throw the code. That will be a harness issue if that is the case and to find it, you will need to ohm test and do a wire wiggle check down the wire.
The last is there could be a issue in the PCM causing this to happen.
The Chevy trucks are bad for having harness issues on the VSS circuit at both the connector for the VSS and at the back of the cluster.
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