latest update.
I decided to bite the bullet and swap over the complete hydraulic unit.
swap was fairly simple. I would advise people to take off the passengers( I am in the UK) wheel and wheel trim to get to the unit as well as removing the headlight as this gives you a few more angles of attack.
Trifecta and air sup lights lite up after the unit swap as expected.
I bleed the brakes but my right rear caliper bleed pin maybe lose as the stream of bubbles didn't stop at first. opening the screw further or tightening a bit got the bubbles to stop..went through about 1.5 litres of brake fluid working that out. oh buy 5 liters if it is your first time.
other brakes bleed fine. I also used DIS to expel the air.
Coded new unit via NCSExpert( I need to get a bit more familiar with this software...whilst not bricking my car

)
Happy to say I have my brakes back. No errors returned...I have only done 100 miles but everything feels good, previously my issue would kick in after 10 mins driving.
Interestingly one of the errors in inpa was variant coding for ehc2. I was not aware of the link between dsc and ehc2
I would be very happy apart from the dent in the wallet and the fact that the strange transmission behaviour is the transmission are not due to getting bad signals from dsc....that is for another thread.
Oh I am also convinced that this is all self induced. I think I buggered the wheel bearing when hammering the axle back on, which then sent crap signals to the dsc which got worse over time. If that is the case tgen I am happy I fixed the mess and I learned how to get the axle on without pounding like crazy(small light taps with the axle socket works wonders) and I have new hubs and wheel bearings
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Current:2004 E53 4.8is, Sapphire black, Black Nappa leather, Metallic Graphite trim, 20" , "Fixed"(soon) Pano-roof, Webasto heater

, 100k and counting
Recent Changes: Front & rear suspension refresh,fluids ,cv boots,air spings bearings and hubs
Planned Change: Pano-roof, cover gaskets.