The problem you have is a worn VVT pulley, it's quite a common problem on these engines. The VVT actuator valve is often unplugged to stop the noise, & that is why you have the error code. It's usually ok to use the car with a noisy, or worn VVT pulley for quite some time, if you can put up with the noise ?
If the pulley is not too worn yet, you may find that changing the engine oil & filter may improve things slightly, as it relies on oil pressure to operate the movement within the unit. But if you want the noise gone & running as it should then you will need to have the VVT pulley renewed.
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