I think if they go open circuit or the reading is miles out it flags an error and ignores the sensor. But if the value is plausible just off a little I think it can do all kinds of weird things from trying to enable traction control to pulsing ABS on various corners tyring to correct for something that isn't actually happening.
For example on my E46, the Bosch stability control will try to correct for understeer and oversteer. Its takes the steering angle, wheel speed and yaw an inputs.
If wheel speeds and yaw say the car is going straight, but the steering angle says car should be going slightly right it thinks the car is understeering. To combat that it brakes the inside front wheel to try and turn the car - probably does rear wheel stuff too, can't remember. But probably brakes inside front and rear. After a while of trying and not achieving anything it calls on the TC which they describe as being separate systems although they aren't totally - either way the TC cuts engine torque.
OP says loud clunk from rear, won't rev above 3k. All he has changed is the steering wheel which is not off centre. I recon its off centre pointing slightly left and its using the rear brake to try and correct for this imaginary understeer condition, failing to do so and then cutting torque.
Is my working theory - but also. One change made now having issues strongly suggests its to do with wheel change. Not 100%, it is a Renault so could have something else wrong too 😂