Advice on potential issue with ABS wheel speed sensor? (U0401 Error code)

Hi everyone, noob here wondering if anybody else has ever seen/dealt with the issue I am having with my 2013 CX-5 Touring AWD.

Was driving normally the other night, when after taking a right-hand turn, my vehicle started to drive "jittery" and "bogged down". The Traction Control and Low Tire lights came on at the same time. Also, the car would only drive at a max speed of about 25 MPH. I later read that this could be due to the vehicle entering a fail-safe "limp" mode to prevent further damage.
Anyways, I get home and start trying to figure out what's going on. I whip out my code reader and I get a "U0401", which is "Invalid/incorrect data received by the ECM", and was related to the "ABS" system.

First thing I did was bought a new battery. My battery was aging, I knew I needed a new one, and it just so happened to be the coldest day of the year when this happened.... although it didn't seem like the culprit, as the car was turning over just fine. One thing to note is that I was messing around with my phone charger inside of the car when this happened (plugging it into the cig lighter/charger)... could be totally unrelated. Another thing to note is that this happened instantly, out of nowhere. Was not a progression of issues/severity.

Anyways, the new battery "helped", but did not fix the issue. The car no longer goes into the "limp mode" where it'll only drive 25mph and the traction control and tire pressure sensors are disabled... however it's still driving poorly, and still reading the U401, invalid/incorrect data.

The car still drives very "jittery" and erratic.... almost like the ECM always thinks it's slipping on ice or something. It's slow to accelerate and just feels totally off.

I got to some googling and had a look around the wheel well. I noticed that I happened to have lost my mud guard in the front passenger wheel well over the summer (hit some large road-kill) and it looks like the connector for my wheel speed/abs sensor is totally exposed in there. It does not look damaged, but here in NY it is winter time with all of the wet slushy salty grimey snow on the roads, and it's definitely exposed.

So I'm hoping that this connector piece I see on the frame (usually hidden behind the plastic trim/mud guard, but exposed on mine) is the culprit. Like I said it looks fine but it's covered in grime, and I have no idea what the actual sensor looks like.

I guess I would like to know- does this sound consistent with the problems I am having? Do you guys think this could be something else?
Anywhere else I should be looking?
I'm not exactly a "car guy", but I know how to troubleshoot something and I have common sense. So if I'm missing something obvious please chime in!

Thank you all!
 
I'm no mechanic, but U0401 is an generic OBD2 code. Your OBD2 scanner only reads this generic code which isn't much of help. You'll need pro level scanner capable of reading ABS and Transmission codes, AKA all system code reader. Your local Auto Zone or Advance AP can read the code for you.
 
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