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Update:
Spoke with BMW today. It seems that they are not sure what the issue is and they have come up with an estimate to remove the valve covers and oil pan so they can physically seek/find the issue. They have just submitted the $3200 estimate to the ins company. So, as of right now, we really don't know anything other than the motor is making a noise. They "think" the issue is in the timing chain area but are not sure.
Hurry up and wait....
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