Which is of these to possible problem am I facing Garmin?
- Senor is not used, what is the point of the senor then?
- GPS is used, and goes bananas when there is air under the bike?
The speed sensor takes priority over GPS data for speed. Check that the wheel size is correct under the sensor details. The magnet less Garmin speed sensor uses rotation through the earth's magnet field to determine a wheel revolution. It could be that you are passing by some local magnetic field that is interfering with the sensor.
what? Well I'm not doing a wheelie and breaking front wheel while outputting 600w.