Hi Lee,
I'm not sure if the programming in that particular vehicle will disable traction control and/or cause the cruise control light to flash because of a faulty knock sensor. There is no way for a repair technician to know all the factors behind the software in your system. You MAY have separate problems with the cruise - then maybe not.
The only thing I can tell you for sure is that Subaru knock sensors are prone to failure due to cracking. The outer shell gets cracks in it and then moisture gets in and corrodes the field windings inside the sensor shorting them out. (SEE PICTURE)
"Reflashing" your computer or resetting the codes will not work if this is the case. You will have to replace the knock sensor FIRST, then reset the computer memory.
WHEN YOU GET KNOCK SENSOR CODE.EITHER KNOCK SENSOR IS BAD.OR FAULTY WIRING BETWEEN SENSOR HARNESS AND ECM CONNECTOR. IF YOUR KNOCK SENSOR HAS FAILED YOU WILL HEAR PINGING OR KNOCKING DURING ACCELERATION THIS WILL HARM ENGINE NEED TO FIX SENSOR DONT KEEP DRIVING VECHICLE DETONATION WILL DAMAGE ENGINE PISTONS AND ENGINE.
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