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Is the noise coming from the rear? How long has this been happening?
If the brakes are binding, the wheels gets covered in brake dust which looks like rust on alloy wheels. The best way is to put it on a car lift and spin each wheel by hand. The wire in the picture looks like the O2 sensor and has nothing to do with the brakes.
There should be no noise when spinning the wheel and it should spin freely. It seems like binding brakes or wheel bearings. Do you have issues when braking, such as the car pulling to one side? does your car drag when setting off?
Do you have excess brake dust on one or two wheels?
Yes, most likely. You may have a seized caliper which is holding the pad against the brake disc when you're driving. Brake dust comes off with any wheel cleaner spray, but your issue is more serious than cleaning off brake dust. Today, I repaired an over-adjusted handbrake which was cause the pads to bind with the handbrake off and the rear wheels were both covered in brown rusty looking dust. My advise would be to get it checked sooner rather than later because binding brakes also causes overheating damage and excess wear on the discs.
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