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Wheel speed sensor is mounted in the knuckle and protrudes just inboard of the end of the hub. You don't have to mess with it or the wiring harness, at all. I removed the sensor on my truck, when I removed the hub, to make cleaning easier and prevent possible damage.

Although I live in an area where rust is not a problem, I coat the mating surfaces of the hub and knuckle with antiseize each time.
 
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