Keep in mind that the O2 sensor reads residual oxygen after the combustion process, it could care less what the stoichiometry of the fuel is. In the end you still get the afr appropriate for the fuel being used. However, open loop is a different situation, fueling will be lean. Since E85 has a much higher octane rating than regular gasoline, I don't think detonation is anything to worry about. Combustion temps will be higher with the leaner mixture, but with the low cylinder pressures at work in the VX engine, it would probably not be an issue for a tank or two.
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