On the new style sensors pinout out is critical. On the old VR, either way will get you a pulse.
Did a little digging yesterday and then hit up my ex Dmax master tech buddy, who suggest testing both ways, with a T87, and a T42. He agrees either unit should get you the same results. I personally have ran a T42 against a E35B, and that one communicated fine. For just a VSS and N safety, either should do the trick.
Also did a bit a digging on the VSS options. For the T87, I would start with a speed sensor out of a 2014+ Allison. Thinking that will bolt right in, and has right voltage flavor. However keep in mind he gap to rector on these 9v sensors is super tight. Like ,030 tight. Playing with both on the bench, quickly noticed the old VR stylle will read a finger width gap.
Last, have you counted the teeth on that stick trans tail shaft yet? It sure didn't look like a standard 40 in the pic you shared.