Auxiliary fans short AC compresor?

[Racekar]

I was noticing that my fans dont come on, I checked the blue/grey temp sensor and it's ok. When I reconnected the plug to it the fans came on high, right away, even though it was only 85 degrees. I played with the wire and when bent it turns on and off so I assume it's a short in the wire that goes to the sensor. It seems to go under the intake manifold, hard to change?

Also the worst thing is that when the fans come on, the AC compressor shuts down. Is this suposed to happen? I have a choice of having the fans on all the time and NO AC, or no fans and AC. My AC was working fine before this, I just wanted the car to run a little cooler in the summer with the AC on. Is this a simptom of the 1995 W124 wire iinsulition issue?