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Have a 92 E-350 Diesel E4OD transmission problem.
Today the tranny will work great all day, but tomorrow will kick into limp home mode (shifter light flashing) every time you start up the engine or within a couple of minutes.
Replced the Tranny same problem.
The same symptoms showed up when the wiring harness coming up through the drivers side b-post was nicked a couple of years ago. It was repaired and all was fine, have checked it and it tests ok (continuity through the wire). No new apparent damage to anything visible.
Transmission shop read code indicates bad shift position sensor. Replaced it twice same thing.
You have a wiring probem to the shift position sensor. The code doesn't mean the sensor is bad, it means something is wrong with the signal from the sensor. that could be the sensor, the wiring, or sometimes the PCM, but that's very rare. Somewhere you have a damaged wire or a corroded pin.