Is O2 sensor really unrelated to excessive oil consumption?

Was having excessive oil consumption test done on 07 Camry with manual transmission and 114,000 miles. I was at 1100 miles driven since the test was started when the check engine light came on. Dealer said the check engine light was not related to the oil consumption issue but my car did fail oil consumption test. The dealer is performing repairs for oil consumption but charging me $480 to replace O2 sensor to address check engine light. Dealer is adamant they are not related. Also the dealer recommended to replace the spark plugs and water pump (spark plugs just replaced 5 months ago and water pump in 2010; when asked the dealer could not identified issues with either so I declined) and recommended transmission drain & fill since it was the only fluid not covered in oil consumption repair work. I appreciate the oil consumption issue being repaired under the warranty enhancement, but feel they were identifying other work so there would be some revenue from their investment. Is the O2 sensor really unrelated to the excessive oil consumption issue or could it be damaged due to carbon build-up from excessive oil consumption? If so, shouldn’t O2 sensor be replaced as part of warranty enhancement?

If the spark plugs were replaced five months ago, there’s no reason to replacement them.

Unless the water pump is leaking or making noise, there’s no reason to replace that either.

O2 sensors can be damaged from the engine burning oil because of the phosphorus/zinc in the oil.

Should it be replaced under the warranty repair?

Can you prove the O2 sensor was damaged by the engine burning oil? Or, did the sensor just wear out?

Tester

What, exactly, did the oil consumption repair consist of?

I am amazed they are repairing oil consumption issues in a 10 year old car. Seems to me you are examining the teeth in that gift horse a little too closely.

Yes, excessive oil consumption can damage an O2 sensor. But so can 114,000 miles of driving. You aren’t going to win this one.

You WILL have to replace that O2 sensor again and the catalytic convertor down the road. Excessive oil in the exhaust will damage both.

Thanks, everyone. Should have explained Toyota has extended a warranty enhancement to 10 years for excessive oil consumption issues in specific models due to known issues. In terms of what work is specifically being done they said they would detail it when complete. I’ll count my blessings they are covering some of the repairs and hope this addresses the need to add oil on a regular basis.