S7 Transfer Case Warning & Rough Shifting Issues

Had similar symptoms on my S5 2017 with the 3.0T. The transfer case warning combined with rough shifting pointed to a chain of related issues in my case. The initial problem started with faulty ABS sensors triggering traction control irregularly. This caused the car to enter limp mode sporadically and confused the transmission control module. The diagnostic trouble codes showed multiple system conflicts. The real fix required: Complete ABS sensor replacement, Transfer case control module recalibration, Transmission adaptation reset, Full system diagnostic to clear consequential fault codes It was a serious issue since multiple systems were affected. The original ABS sensor fault cascaded into transmission and transfer case problems. Leaving it unfixed risks potential damage to the transmission and AWD system. The shop needed specialized diagnostic equipment for Audi drive systems to properly identify and reset all affected modules. A regular OBD scanner wasnt enough to solve the complete chain of faults. Worth noting, some shops may only fix the obvious symptoms without addressing the root cause, which is why you might see the issues return.

Thanks for sharing your experience. My Audi showed very similar warning messages and limp mode behavior. The traction control system definitely needed attention, as the diagnostic trouble codes kept pointing to sensor issues. The symptoms match exactly what I went through, especially the rough shifting and transfer case warnings. After checking with more specialized shops, they identified the root cause rather than just clearing fault codes temporarily. Mind sharing what the total repair cost was in your case? Also curious if everything has been running smoothly since the fix or if you noticed any other quirks popping up?

Glad to help with the cost details. The full repair ended up being free since my shop determined the ABS sensor failure triggered all the other issues. They covered it under an extended component warranty. Since getting the proper fix with the specialized diagnostic equipment, all the problems cleared up completely. The transfer case limp mode warning disappeared, and the gear selector started working smoothly again. The traction control system now functions perfectly, no more unusual activations or warning lights. The key was finding a shop that properly diagnosed the root cause instead of just clearing codes. The control module needed a complete recalibration after addressing the sensor issues. Its been 25000km since the repair without any quirks or warning messages returning. The transmission shifts are back to being crisp and precise. Most importantly, the car no longer goes into limp mode unexpectedly. Getting the right diagnostic equipment really made the difference in solving the complete chain of faults.

Thanks everyone for the insights. Finally got my car back from a specialized Audi shop today. The repair process was eye-opening. The diagnostic trouble codes led them straight to failing ABS sensors. Just like mentioned here, this triggered a cascade of powertrain malfunction warnings. The gear selector was acting up because the traction control system kept getting false readings. Total repair cost came to 1200 Euro including: New ABS sensors, Control module recalibration, Full system diagnostic, Labor costs After a test drive, the car feels completely different. No more limp mode activations, transfer case warnings disappeared, and the transmission shifts smoothly again. The mechanic explained how the faulty sensors were causing the entire drivetrain to behave erratically. Learned my lesson about going to shops with proper diagnostic equipment. The first mechanic just kept clearing codes without fixing the root cause. This specialized shop identified and fixed everything in one go. Will update if any issues return, but for now, the car drives like new again.