I assure you the nitrous had nothing to do with your O2 sensor failing. Nitrous is 2/3rds nitrogen and 1/3rd oxygen. At around 600 degrees (give or take 50 degrees), the nitrogen "breaks down" and releases the oxygen. The only thing your exhaust will see is more oxygen, which can't harm your O2 sensor and in fact can help your cats. The problem comes when the system is installed wrong, and you have too much fuel being added. This won't damage the O2 sensors, but can trick the ECM into going lean, and can and will clog up your cats.
Most fuel additives (ie: octane boosters) have lead in them, and aren't intended for an engine that is emissions compliant. 5ohCOUPE is right that lead will harm O2 sensors, but not all race gas is leaded. Lead will destroy the cats, too. O2 sensors are very sensitive. I have seen O2's that were damaged because too much RTV was used on an exhaust gasket. But Oxygen, the by-product of nitrous, is what they were designed to detect, and thus nitrous won't harm them. As far as fuel additives go, make sure it says it's O2 sensor safe before pouring it in your tank.
Take care,
-Chris
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