Hey TontoLoid, welcome and thanks for sharing your experiences, A few questions naturally as I embark on this myself once life goes back to being somewhat normal.
Have you done any logging to look at fuel trims by any chance? The BTU of E85 is less than that of gasoline so you should need quite a bit more to make the same power, hence your consumption rate going way up.
The check engine light is probably because the fuel system can’t push enough fuel within the parameters dictated by the ECU. May be out of range so to speak.
In winter, the actual ethanol content fluctuates and goes down. In some areas the content will drop down to E60. My “winter” blend registered at E72 and I’m waiting for the summer blend of E85 before experimenting as I don’t want to constantly sample and have to recalculate ratios to achieve E40.
On the fuel injector front, I know lots of the RS3 guys are now having injector issues due to using straight E85. I just replaced mine and I don’t want to do it again any time soon as it isn’t cheap! I’ll probably stick with E40 and a tune.
Do you by chance ever add any additives like Techron to the tank to help clean the ethanol residue? They generally mix the ethanol with 85 octane no detergent package gas (crappy gas in other words!). My plan was to use the flex fuel pump to mitigate some of this and adding Techron every other tank or so.