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I have the same issue, bought a new 64GB usb and formatted it. Tried to update the software but I still getting the same "software on usb device not up-to-date. for info bmw.com/update" message. I saw another thread which mentioned that it might work using the usb connection in the glove box, however mine only has one usb connection in the center console. I'm not sure how another usb connection would work, they are surely all arriving at the same device.
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