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The oil condition sensor does measure the quality of the oil in the engine, but it is looking for the oil quality to degrade to a specific threshold, so even though the oil condition will change to that of fresh oil, the sensor doesn't recognize it because it only knows when the oil reaches a threshold of capacitance that indicates the oil needs to be changed (along with many other parameters the CBS tracks like fuel use, cold starts, mileage, etc.). There is no intelligence built into the CBS oil monitoring system.
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