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Bosch invented the things and they call them oxygen sensors too... Don't they generate a voltage proportional to the difference in partial pressure of oxygen across the platinum-zirconia electrode?
In any case it sounds like your volvo is running rich and surging when the egr is open, then it leans out after a few seconds and feels like a big power boost. If it were running lean with the egr open then you would have backfiring in the exhaust and not so much a surge feeling but just a big lack of power.
Try it while accelerating at WOT and measure the vacuum pressure and report back. The lambda or O2 circuit is not in the closed loop during WOT in Bosch Motronics.
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