Error Type TE1 occurs when the Target receives an invalid CCC code. When this happens, the Target will be unable to identify the CCC being sent and would be unaware if the Controller enters HDR mode very similar to Error Type TE0.
The Target recovers from this error in the same way as it recovers from Error Type TE0 by enabling the HDR Exit Detector and monitoring the SDA and SCL lines for possible SDR mode transfer.