Prisma Damping Adjustment Fault

Sounds like it could very well be a suspension issue. The damping adjustment is basically the computer trying to control your shock absorbers. The error code, bumpy ride and the warning light all point in that direction. I'd start by checking the wiring and connections to the shock absorbers. Is there any visible damage to the cables or plugs?

I'll definitely check the connections. Any idea where exactly I should be looking for these connections? Are they easy to spot, or do I need to remove anything to get to them?

They should be connected directly to each shock absorber, you'll likely need to get under the car to see them properly. Given the symptoms, especially the stored error, I still think it's worth getting it checked by a workshop. It could be something simple, but messing with suspension without the right knowledge can be risky. It could be just a defective cable or plug connection of the component defective. I was quoted around 95€ to get it sorted at a local shop. Are you confident working on suspensions?

I'll take a look at the connections, but I think you're right about taking it to a shop. Suspension work does sound a bit beyond my skill level, and I'd rather be safe than sorry. I just got it back from the workshop. Turns out that you nailed it; defective cable! They replaced it and now it is all good.