Wheel speed sensor/disk hub issues

[William Jacobsen 0]

ABS and traction control not working, replaced wheel speed sensor did not fix the issue. Looked inside the hole where the sensor goes and a part of the disk hub is very crushed (in attatched image) Is this causing the sensor to not work?

[Harper 559]

Almost certainly causing the sensor to read wrong and throwing errors. Usually more common on cars that get rusty there.

Haven't done the fix myself but if you google E46 ABS ring replacement there are loads of threads that might be helpful. 

[NZ00Z3 189]

That looks like the rear wheel.

The reluctor ring comes with the half shaft.  There is a place in the states that sells just the reluctor ring so you don't have to go to the expense of a new half shaft. https://www.reluctorrings.com/

Try to work out how the damage occured, so it doesn't happen again with the new ring.