If you are using the original dash and speedo, the newer "LS" type PCM and 4L60e transmission, may eliminate the "DRAC" in your truck. I am not sure if I saw what tranny you where using, and LT1swap needs to know for programming your PCM. Branden is a busy guy, but a good egg!
The sensor is permanent magnet type that has two wires and a 3rd for shielding. The signal is weak but also is A/C (alternating current). The "DRAC" purpose is two fold. It take the A/C current, converts it into an "On - Off" digital signal and amplifies it. It has the ability to correct your speedo accuracy for tire size or final gear ratio change by different methods including cutting wires in the array as per instruction, or later "DIP" switches depending on the year, but 92 probably had wires inside.
The speed sensor can be removed for I.D., then a new O-ring to seal it, helping you move forward, plus you won't loose much fluid. Late 1992 was the first year for the 4L60e and may have two different sensors. Type #1. Plastic drive gear on output shaft that drives a rotating magnet inside a coil or cable only. Type #2. The driven gear is metal with 40 teeth. The sensor has two metal bars with internal magnet & wire coil and has an close "Air Gap" when installed. This is "High Resolution" and this is where they get 4,000 clicks per mile. (You may see this info in VSS description)
On the "LS" engines PCM, you'l see a VSS Low & VSS high, this makes no difference but if the wire color matches, use them. Inside the PCM, it does what the "DRAC" did. It will have an output dedicated wire to the speedometer. You may see 2 more VSS outputs in the schematic, depending on the year of the donor, but one goes to the radio (Gets louder as you go faster), but the other goes to the ABS. So neither of these last two will be needed.
The OEM VSS sensor has a ground wire that exits the harness at the tail-shaft housing & VSS sensor & goes to the frame. It is stripped back aways and touches a foil tape. The main two wires are twisted 9 times per foot. (We pinch one end in a vise, the other in a drill, but never count) Home improvement stores sell metal foil tape in the HVAC section. Tape the ground wire onto the twisted pair, then wrap with foil all the way to the front, then add a ground out to an eyelet to chassis. This ground should run the entire length of the VSS harness. By twisting the wires, then covered with grounded foil tape, helps protect the signal from outside interference like a spark plug wire or high current (10 AWG / On-Off) circuit from "RFI" or mutual induction for a clean VSS signal.
This is a common practice for crank sensors, GM LAN to ABS wheel sensors. Just keep it in mind when planning the new "LS" PCM wires to the 1992 wires. For the most part, you will leave them alone and use them as they are, but perhaps longer. The new PCM requires a clean VSS for 4L60e shift points & down-shifts as it compares it to the throttle position sensor's movement. Pedal to the metal, or coasting down for a slow moving blond in a convertible mode... LoL
Enjoy the ride because you'l have skin in the game and be able to tell your friends "I Did That"!
P.S. YouTube; Monster Trans VSS sensor Types for video I.D. so you know. This all part of the planing. For example, some mount the PCM under the battery box. Decide this early on with careful thought, so wires a long enough. Don't forget dielectric grease in connectors. It helps seal them from moist air & water and sold in home improvement in automotive, like permatex for under $4.