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I wish I knew more to help further. I take it that you don't have a second key to see if the key is the problem.
It may be worth some money to take the car to a dealer who has Porsche system tool. The dealer should be able to actuate each component of the locking system individually and see which one is broken. IIRC, durametric can only look for codes. My guess is 1/2 labor for a more sophisticated diagnostics. Otherwise, you're just rolling the dice part by part until you get lucky.
And for all I know, it still might be the key electronics, but I tend to discount that theory because the key won't work manually. On the other hand, the fast flashing may point to the key. I just don't know
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