The inside making the bad sound was the bearing, as this wears it takes out the sensor.
Glad to hear all is well, I assume the steering code went away too?

The steering code is only intermittent and rare. The bearings were not bad and there was no play in the bearings and no bearing noise/vibration. The sound was most likely the speed sensor. My cars computer was getting zero signal from the speed sensor and the noise coming from the hub after it was off the car sounded like the speed sensor was froze up and not turning with the rest of the hub/bearing assembly. It may also have been a seal inside the hub assembly making the noise, but either way, the noise wasn't metal on metal.