I finally got my E500 to a shop to get the codes read to try to figure out why the ASR light goes on periodically, pushing the car into LH mode. The shop said that it is because the wiring harness is badly deteriorated. He doesn't think that the codes he got: Crankshaft Position Sensor and CAN Databus are accurate, but caused by the harness shorting.

Does anybody know if that makes sense?

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1994 E500 199/Gray 82k
84 300D (Salty) Orient Red/Palomino 141k
88 300CE (Ersatzhammer) 904/Java 163k -- Turbo Technics twin turbo kit, AMG Gen I body kit, Sportline steering box and steering wheel, Sportline/Eibach /Bilstein Sport/500E suspension, Quaife LSD in 210 mm diff case, Silver Arrow brakes.
88 300CE Brabus 3.6 199 on Black 44k

Very possible - bad harnesses can throw random codes. If the harness is indeed visibly deterioted it is probably original and will need to be replaced. If not, it's likely a replacement and not likely the problem.

depending on the tool used to pull codes, if the car was NOT running, the crank sensor code will post. i've used generic stuff in the past and this has always been the case. if the sds was used, i'm not familiar with what it will do with the motor not running.

on the harness issue, there's more than 1 needed to fix the problems. i've not done a v8 but on the 4s and 6s, there's another harness for the trans and maybe the ac. on the 4s, there's 1 for the coils. the harness attached to the throttle body suffers the same way, you'll need a throttle body. the main harness on the v8 won't replace everything under the hood coming apart. any flaking seen means you need a harness or 2 or 3. good luck, chuck.