Timing Belt Failure & Camshaft Sensor: Causes & Fixes

Hi,
Awkward situation: A colleague was surprised that her car's automatic start-stop system suddenly wasn't working as well. The VAG-Com diagnostic tool indicated a "no signal" error for the camshaft sensor. I looked it up and found that this issue sometimes occurs and is only important during startup. I told her that she could still drive the car without any problems.
Over the weekend, there was a sudden jolt on the highway, followed by a loss of power and then the engine stopped. The timing belt is only partially intact; the half connected to the engine has frayed and come loose. I could have checked it earlier, of course.
Unfortunately, the car won't be disassembled until next week. Could it be that the remnants of the belt pushed the NW sensor out of its housing, causing a loss of signal? ABS sensors, for example, are just plugged in. I know checking would likely answer my question, but that's not possible right now.

The belt was partially worn down on the engine side. It initially damaged the north-west sensor. Later, a series of teeth were sheared off.

If the belt is already so damaged that it causes the gear to slip.
The camshaft signal is incorrect in relation to the crankshaft signal, which means the camshaft sensor is not producing a signal because it's outside of its operating range.

You're not the first one this has happened to!

"Wouldn't that be an 'implausible signal'? Anyway, my colleague drove the car for a long distance without any problems. The next morning, there was a slightly delayed start, but the engine ran perfectly fine. I read and re-read the error code, and it indicated that it wasn't immediately concerning. Three days later, at 170 km/h, there was a sudden loss of power, forcing her to steer into the next exit ramp, resulting in a complete standstill."

With a slipped belt, it should theoretically only run at a reduced speed.