P0011 is a tough nut to crack in those engines. I strongly recommend you find a shop that specializes in VW (probably more than the dealer does!) and let them have a go at it.
Sounds like you got ripped off. You dont need to flush anything for a P0011. Sounds like a bad sensor. Unscrew the bolt holding the old sensor on, screw it back in with a new sensor. Easy!
Sounds like they ran some intake cleaner in hopes of burining off whatever they thought may have caused the code. How many miles on your timing belt ?
There is nothing to flush. They just charge money for a useless service. You just need to check the wiring to the sensor, and if it is good, replace the sensor.
My engine light popped on, and Autozone's diagnostic showed error code P0011, camshaft position/timing error.
After dropping it off at my local car shop and on my way to work, they called to explain they needed to flush the engine to help diagnose the problem, stating this was their normal procedure.
Later, they called to let me know they had finished and after resetting the engine light, it hadn't come back on, so they were ready for me to pick it up, saying I needed to "put some miles on it" to see if the issue was fixed.
About ten miles of driving later, the light popped back on, and I'm debating just taking it somewhere else.
I explained, at the time I dropped it off, the diagnostic code and what it showed in the Autozone computer, Camshaft timing/position code P0011.