Vehicle Speed Sensor / P0500 error code on Mk1 MG ZS 1.8

Does anyone understand the relationship between the Vehicle speed sensor, speedo and wheel sensors on the MK1 MGZS 1.8?

I have a P0500 error code that I can't erase. I've checked the wheel speed sensors via the ABS diagnostics and they are all good / consistent and the speedo also reads steadily (if a few mph higher than the GPS checked speed via a phone App)...

I had to replace the differential mounted VSS drive base as the prior luddite had snapped / bodged a repair on the original one, but I can't clear the code no matter what I do, when everything otherwise seems generally in good order.

It doesn't appear to influence the behaviour of the vehicle and the speedo is rock steady at all speeds, but it would be nice to achieve a fully clean bill of health diagnostic codes-wise. I have read that the VSS was necessary for CVT equipped vehicles, but this is a 5-speed manual; are there different versions of the sensor itself that could potentially be causing this problem?

Any suggestions?
 

I do not have time to consult literature but I wonder if you are getting speed information from ABS and in that case VSS is rendudant? If so maybe signal from 2 sources confuses system which throws P0500 error?
Maybe try to just disconnect VSS plug from sensor and see how it will behave?

EDIT: I checked with literature and in case of k-series engine 1.8 speedo is getting information from vehicle speed sensor. So forget information about ABS signal. Only KV6 engines are getting speed information from ABS. That means wheel sensors does not play any role in getting speedo signal.

Thanks.

Can I ask what literature you are referring to (and how I might be able to get access to it)?

I am refering to RAVE CDs in which you have electric diagrams for MG-Rover cars. You can find them here:  https://www.the-t-bar.com/downloads/category/3-rave-cds
Having in mind that you have mk1 MG ZS then you should consult RAVE B CD. Mind that these CDs are encrypted so you need to install whole package (RAVE B in this case) to be able to read them.