I think there are differences in E39 models..
1) M52 usually have sensor issues and less percentage of ABS controller fault
2) M54 usually have higher ABS controller fault and less sensor issue. When this happens, error indicates "left wheel sensor failure", change it and works awhile then prob comes back. Then, change ABS controller, most times resolves issue.
So far reading through forums, to resolve
1) M52, check sensor wiring, use heatshrink to proper insulate the cable and resolder if necessary, clean contacts.
2) M54, change ABS controller - for prevention, get proper heatshields to shield heat that comes from engine
1) M52 usually have sensor issues and less percentage of ABS controller fault
2) M54 usually have higher ABS controller fault and less sensor issue. When this happens, error indicates "left wheel sensor failure", change it and works awhile then prob comes back. Then, change ABS controller, most times resolves issue.
So far reading through forums, to resolve
1) M52, check sensor wiring, use heatshrink to proper insulate the cable and resolder if necessary, clean contacts.
2) M54, change ABS controller - for prevention, get proper heatshields to shield heat that comes from engine