Good news - looks like the issue was fixed by replacing the main wiring harness within steering wheel. ~$80 shipped.
This is the part I ordered:
https://www.fcpeuro.com/products/bmw...el-32307848337
Part number for my car was 32307848337.
There are two different P/Ns depending on features (check realoem).
Exciting! - this thing was driving me crazy...30 min fix well worth it 😄