Chosen Solution

My MBA had water damage and it would crash randomly. We were able to back it up before we purchased a replacement logic board on eBay and installed it. Now when we start the MBA the fan runs at 6500rpm and kernel_task runs at 400% - googling suggests this is a sensor problem. Running Apple Hardware Test gave the result in the title - googling suggests that it is a bad temperature sensor in the palm rest. I’m not sure what to do at this point. Any ideas?

You may need to do a bit more cleaning around the trackpad ribbon connectors and check the ribbon cable leaving to the logic board, it may have water damage too. Often I end up replacing either the full upper case or the discreet keyboard and/or trackpad sub assemblies when I get a liquid damaged system in.

Hey - had the same Problem a while ago -> Get a new Trackpad -> done