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That's not chipped, that's missing. And yes, that will cause issues.
Vaguely possible it might run (poorly). More likely it won't even start.
The ECU watches pulses from the sensor caused by the teeth going past the sensor, and looks for long or short patterns in the teeth going by. A missing tooth will make it think the crank is in a different position.
Thank you for the extra information. I went ahead and bought a new OEM crankshaft gear so hopefully I do t run I to any more unexpected issue. Only thing to do now is clean up the area and install the parts. Hopefully I can drive it this weekend.
Did some more work today. I install the water pump, thermostat, cam gear and crankshaft seals today. I also found a way to use a socket to hold the camgear while I loosened the bolts