Continuous Flashing Hazards and now ABS Failure

Awhile back, I my 2010 gen 3 Prius began flashing hazards uncontrollably making the car pretty much undrivable. Based on some other posts on this forum, I cut the wire HZRI (light blue) which stopped the flashing. Shortly after cutting the wire, the dahsboard lit up with the ABS, Brake and Traction Control warnings. The lights imitated the scenario of when one of the speed sensors fails. When I took it to the shop for state inspection, the shop noted that codes indicated the rear right speed sensor had failed. I replaced the sensor and bearing with after market parts but the code persists according to the shop. The shop now suggests that the part is faulty and should be replaced under warranty. I find this all a bit convenient as the lights came on after cutting the wire leading into the ABS module. My question is, would cutting the wire cause the speed sensor codes or should I believe the shop that the part is faulty.

 

I referenced this post: Hazard lights won’t turn off | PriusChat