I have this same issue. I have the Check engine light and Trac Off. I had the car looked at at a Import mechanic. He verified the code for the knock sensor. (There are 2). He couldn't figure out the transmission not shifting into overdrive. I called a lexus dealer and they told me that it is a safety precaution that the car will not allow itself to shift into overdrive when the code for the knock sensor is registered.
Hope this helps.
Have you replaced your sensors yet? If so, please let me know if all is normal. I am waiting for the parts.
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