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My understanding is the O2 sensor is placed near the engine for a couple of reasons.


1. It has to be hot to work, being closer to the exhaust means it heats up faster

2. They don't like moisture so less condensation the further up the exhaust


And, of course, if it is being installed as part of the manufacturing of the car, having it up front and close to the engine means less wiring.


Otherwise my internet searching has indicated that a temporary AFR at the exhaust will work for tuning purposes.   (I am no expert)


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