I spent a bit of time today dissecting the crank sensor that I replaced the other week. It was still working, as far as the ECU could tell (no fault codes, no EML), but the outer insulation of the cable was all but gone.
Having carried around a genuine spare for a year or so, I thought I'd fit that, and maybe mend the cable on the old one. After looking a bit closer, this seemed impossible, so I thought I'd sacrifice it for 'learning'. Towards the sensor end of the cable, not only had the outer insulation cracked and disintegrated, but the inner insulation on the 3 wires inside the screening was also in a disastrous state. I'm amazed that it was still functioning TBH.
They're tough little beggars to hack to bits, I'll say that much. Eventually uncovered the fact that it appears to be a completely passive sensor, no electronic components in there at all. There seems to be a pair of coaxial coils right at the tip, wound on the inner and outer surfaces of what looks like a 'pot core'-type ferrite, with the open end facing into the crankcase.
I
guess this must work as a sort of transformer, where the inner and outer coils are coupled more or less depending on the presence/absence of metal close to the tip of the sensor.
I'm not sure that all this waffle really helps anyone, but maybe someone knows about the circuitry inside the ECU that energises and reads back these coils, to make a bit more sense of the thing??? If anyone has a duff ECU they want to sacrifice to the cause, I'll happily attempt to find out this stuff if no-one has prior knowledge.

To sum up, the cable is the most likely thing to fail on this sensor. Oh, and make damn sure it's pushed fully home when you fit a new one, 'cos the distance of the tip from whatever it 'sees' in the crankcase is surely critical.