Anything is possible.
Generally on an electronic transmission, when a speed sensor goes, the vehicle will go into "limp home" mode. My only experience is with a GM vehicle with a 4L80E, it will start out in First and shift into Second gear, then stay there until you turn the engine off and restart. Then it starts out in First, goes into Second, and stays there again.
When this happened to me a new speed sensor was $28 and could be serviced from the outside of the transmission.
Side note not related to OP question: On transmissions with two speed sensors, the computer looks at input and output speed to calculate if the trans is slipping, as it "knows" the gear ratios and also what gear the transmission is in.
R.
Some years back, our 99 Dakota was stuck in 1st. It threw codes for the trans sensor & solenoid and I replaced em. Long story short, it turned out the rear o2 sensor was bad, and didn't report the warmed up CC and the mismatch caused it all.
Ken
