I've started having this issue recently. P0140 was expected as I replaced the factory 5.7 style dual cat with a 5.0 style Y pipe to single cat, so I only have one post cat O2 sensor. Not sure why I'm getting P0160 though.
Does a downstream sensor "failure" affect my fuel consumption or anything like that? IIRC I read somewhere that only upstream O2 sensor failure will put the engine into limp mode?
Edit: thought I'd throw out there that I wasn't getting any O2 sensor codes before the exhaust work. Cat was replaced simply because it was close, never used, factory style, and the price was really good. Sensors were preventative maintenance while I had everything apart