Q: I am unable to turn on the vsc trac light. I reset it and it comes back on. What would cause this?

We had torrential rain and flash flooding in my area recently. I noticed after driving through a puddle of water, my check engine AND vsc trac indicator lights came on. I went in to the dealership. After spending a ton of money to get 2 gaskets and 2 other things (fluids flushed) done, I still have the vsc trac indicator on. The dealership told me my catalytic converter was bad and that was the reason the lights were on. After some research, I could not find one article that connected the two. I was also told the cost to replace it would be $1,190. What would cause the vsc trac lights to come on?

My car has 176000 miles.
My car has an automatic transmission.