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The engine ECM expects to see a value between 400-600mV at the rear lambda sensor - VAG call the rear lambda the "diagnostic sensor", because it basically checks if the change in fuel trim, initiated by front lambda signal, has "improved" the mixture based on the map. In a no CAT scenario, this...

Coz its a decat rear lambda is reading same as front and bringing on MIL. As superkarl says, needs tricked or looped out.

That's a rear lambda code, I think. Your heater circuit is probably dead. 9/10 times a new sensor sorts this but you might want to get wiring checked to confirm. Re steering: sounds like play in steering component. Needs to find a ramp.