Based on your description it is not intermittent (meaning it randomly comes and goes), it is a very specific lack of operation below a very specific speed. That greatly limits what could cause it, and connections are unlikely to be the cause. Id' recommend changing the title of your thread to match that of this post, to get more accurate help / responses.
You don't say if this is a new problem (and exactly what happened between the time it worked and the time it didn't) or if it has always existed, but if the latter, then it is probably a setting in the system, either corrupted or set to disallow assist below a certain speed. (usually that kind of restriction is the other way round, to prevent assist *above* a speed, but...)
If the former, you'd need to list events that occured between the time it worked and the time it didnt'. Being a fairly dramatic kind of change, it should be easy to remember when it started and what happened at that time. Then you could work logically from those events to see if any of them could possibly have affected anything on the system that could then in turn cause your problem.
The spark you get at battery connection is normal when you connect a voltage to a load like that. it doesnt' charge anything in the motor (because that only gets power when it is being commanded to spin) but it does charge capacitors in the controller.
Wheel speed sensors on middrive ebikes simply use magnets on the wheels (usually on the spokes) and a sensor on the frame; the sensor is turned "on" (usually grounded) by the passage of the magnet. The controller sees a pulse for every magnet pass, and then based on the wheel size set up in the display/controller, it counts wheel revolutions to determine speed, then modifies it's behavior based on whatever settings you have chosen regarding that. So no, the sensor doesn't generate a voltage in the manner you're thinking, so it wouldn't have the kind of problem you would be checking for.
Also note there are a number of TSDZ2 threads, some of which may have info on similar problems to yours, if you haven't already read thru them. This is a link to all threads with TSDZ2 in the title; it's unlikely that they are all relevant, but some certainly could be.
https://endless-sphere.com/forums/search.php?keywords=tsdz2&terms=all&author=&sc=1&sf=titleonly&sr=topics&sk=t&sd=d&st=0&ch=300&t=0&submit=Search