First, let's break out the oscilloscope and check the output signals directly. These sensors are pretty clever, they are *active* and not passive like MK20. They output a square wave with a very short pull down from 12V to ~6V when they detect a trigger on the hub (this is very different from the e9x and e60 M5 still).
Here's what the e46/e6x non-M looks like on the active 2-wire system when spinning.
Ok, so we're looking good so far, let's make 100% sure we're right here by plugging the e60 sensor into the e46(it has the exact same keying on the connector) and firing up INPA to read the individual wheel speeds.
And would you look at that, it reads the sensor just perfectly

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