E320 16 PIN DTC Charts inc. pin 8, pin 14
You should build the tool and check the other pins [ 8 and 14] , as the DM one you used is only for Emmissions codes . [ like egr fault]
If the insulation is cracking , you have the harness problem and the correct remedy is replacement.
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........the CE lamp is to notify the Inspector and Operator that the Emmissions Module has detected an Emmissions Fault. That is it's sole purpose. I highly doubt that NC has a saftey only vehicle check , ignoring Emmissions on an HFM/SFI systems car.
As far as EGR code, the first suspect on that chassis is a restriction/blockage of the EGR pipe where it meets the head .
This can be verified by doing a hand vac. actuation of the EGR valve while the car is at idle.
If NO, then Second suspect is vac line at SOV valve is cracked.
Check Archieves for all this info...