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Knock sensors can and do fail (BMW guys know about them quite well). Usually the failure mode is excessive activation from internal fractures or corrosion which then causes drivability problems, CEL, or low power from retarded ignition. Usually "Open circuit" codes are the ECU complaining about an incomplete circuit. It's possible that something got unplugged, a wire broken off, or something pinched in the bellhousing when the transmission was replaced. Could also just be coincidence. Be aware that knock sensors are delicate and fragile things, don't bother with used parts they will already be bad or fail shortly after being installed.
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Current stable:
1995 E320 157K (Nancy)
1983 500SL 125K (SLoL)
Gone but not forgotten:
1986 300SDL (RIP)
1991 350SD
1991 560SEL
1990 560SEL
1986 500SEL Euro (Rusted to nothing at 47K!)
Gone and wanting to forget:
1985 524TD 167K (TotalDumpster™) [Definitely NOT a Benz]
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