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Hi,
The 1>2 flashed on the dash and now it seems stuck. I accelerated to try to disengage it but it still will not allow to shift to 2,3 or 5th gear. Is there another way to disengage it?
Nothing in your profile about car which makes it difficult to help at times.If its an A6 try clearing any codes or disconnect battery for a few minutes
Did the car have CAGS working or did it have a CAGS bypass, either fuse or transmission mounted? That's where you need to start looking.
If you had a bypass installed remove it from the system. Also check the CAGS fuse in the passenger side of the engine bay and make sure it's a good standard fuse. Next I'd also try disconnecting the battery for several minutes and then reinstalling to see if that releases the CAGS lockup.
And I'm guessing the dash light said 1-4 and not 1-2.... anyhoo, answer those and we can troubleshoot from there if required.