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Sounds like y could be the transfer case. Symptoms for it bmw says that if it feels like the car is stuck in 4x4 than ya the case. They have a procedure on how to diagnose it. You have to hold your foot on the brake and gas and let off the gas slowly and if there’s vibration than it’s the case.... or it goes something like that. Maybe you can search online and find the bulletin for it.
Maybe someone else can provide a copy of the bulletin from ITSA or rheingold.
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