Ok, just got back from reinstalling the vanos solenoids after cleaning them. After clearing the SES codes and starting the engine.... the limp mode and rough idle came back within 2 mins.
Now here is where it got a bit interesting (or confusing).
Like I mentioned earlier there is a loud squeak near the alternator. I have ignored that since it should be an easy fix, but now I'm thinking the SES codes and the noise are likely directly related.
I sprayed WD40 on the rusty pulley where I think the noise is coming from, and the noise stopped and the engine began to idle smoother. I turned off the engine, cleared the codes again, and doused most of the pulleys with WD40 and there engine is much smoother. And no codes have been popped after 10 minutes of running.
If you watch this video it shows an interesting slow motion view of the belt struggling and "slapping" due to the resistance of one of the pulleys (i think). Skip ahead to 3:20 to see what I mean.
Can a seizing pulley or slipping belt cause the P052B/P054B codes? I guess if the oil flow is affected right?