I had the same problem; when I replaced my 02 sensor, it came right back... after using vcds to "clear it", definitely confusing.So, I tried a "hard reset"; removed pos/neg battery cables, touched them for 30 seconds, reinstalled and the code went away, didn't come back. Hope this helps...
Remove the positive and negative battery cables; then touch the cable ends together, for 30 seconds and then install them back, on the battery. This clears the computer, this is called a "hard reset"; it seems to totally wipe the memory of the engine control module. Hope, this helps!
Let us know how it goes; what brand and model # of the 02 sensor did you buy? Some people have had problems with incorrect or low quality parts. BOSCH is the way to go; high quality and the OEM for VW:
The original code that you got; was for the heater portion the O2 sensor; you can test your old one with the use of a multi meter.. What brand and model number of The O2 sensor did you replace it with? What year. Engine and model is your new beetle? Do you have a multimeter and what kind of scanner are you using?
Was the bad 02 sensor, upstream (before the cat) or downstream (after the cat)? What is your engine code (BPS, BPR)? From the link below, it be possible there is more than (2), 02 sensors for california emissions?
Have you looked at the sensor and unplugged/plugged back in the connectors; the manual shows you how to test the wiring and confirm that everything is okay. If there is a problem from the plug to the ECU; no amount of replacing/throwing parts or fuses at the issue, is going to fix the problem. (they are listing the fuse as # SB4)
You need to troubleshoot things step-by-step and that way you can see what is or isn't working correctly.
Lets keep it BASIC and simple:
1. which sensor did you replace? The first one closest to the engine (upstream, sensor 1) or the one after the catalytic converter (down stream, sensor 2). The trouble code you listed; was for sensor #2 after the CC and furthest away from the engine.
2. what is the engine code for your car; it will be printed on the sticker on the plastic timing belt cover, has three letters (BPS, etc.) and also a bar code on it. This way; we can CONFIRM you got the right 02 sensor. It is possible; you replaced, the WRONG 02 sensor, it has happened before and it is EASY to get things confused and not figuring out which sensor/location is which (on california vehicles; it is possible they a different Behind Three Way Catalytic Converter, with three 02 sensors) .
Answer those questions and we will go from there....