P0340 Code on 1996 Ford Ranger 2.3L: Diagnosis and Solutions for No Symptoms

New forum member seeking help with P0340 diagnostic trouble code on a 1996 Ford Ranger 2.3L engine (90,000 miles). The vehicle recently underwent timing belt and water pump replacement. Timing marks were verified multiple times during assembly—crank rotation was performed several times to ensure alignment accuracy. After reassembly, the engine started successfully and runs smoothly with no noticeable symptoms such as stalling, hesitation, or hard starts. However, the P0340 code appears immediately after startup and persists even after clearing via OBD2 scanner. The cam position sensor (2-pin, mounted on auxiliary shaft) was removed and tested with a multimeter; readings appeared normal. It was replaced as a precaution, but the code continues to return instantly. Despite no drivability issues, the engine runs quietly and efficiently. Initially, there was a brief knocking sound upon startup that resolved within minutes. Key questions: Could a one-tooth misalignment in the timing belt be causing this? Is it possible that improper crimping or wire damage to the sensor circuit is triggering the code? Given the absence of performance issues, could this be a faulty sensor circuit rather than a mechanical failure? Any insights or troubleshooting steps for P0340 on 1996 Ford Ranger 2.3L would be greatly appreciated.