Did you ensure the valve body you installed was a dead match for the one you removed? Could be slight differences in iterations, and your cruise control could be seeing a mismatch in speed sensed due to that. I know changing gear ratios in the diff will kill cruise control in these trucks.
Your idea about the speed sensor may also be valid. And Buseman's suggestion to check the switches (which will be two small block shaped switches near the top of the pedal arm) is good because killing off the easy to get to and test first is always wise. Adding a pic of what the switch looks like. Suze is similar to a small match box or such. As Busemans said, there will be two of them. Possibly different colored plug receptacles.