[Muskoka800]

For what it’s worth I’ve used K&N oiled filers since 1988 (Mustang Gt) and many cars since without issue. I have never had an oiled sensor issue.
My process;
Lightly oil the new K&N filter. Lay it on paper towels overnight. Any excess oil will drip out.
Next day install the K&N. Save your OEM or regular paper filter.
A year later remove the K&N for service. Install the paper filter which you saved.
Clean and re-oil the K&N per the instructions.
Leave it overnight on paper towels to drain any excess oil.
The next day, or when you get to it, switch it back in and set aside your paper filter for the next service.
This way your filter is never over-oiled and your car is always “on the road”.
In the long run I save much $$$ by not repeatedly buying paper filters.
I also keep my vehicles for several hundred thousand kilometres (big daily commutes) and never experience more than a litre of oil usage during an 8,000 kilometre (~5000 mile) oil change interval. Nor have I ever experienced any sort of engine failure.
Happy Motoring!