I use a 256 GB USB flash drive (Samsung FIT Plus, formatted as exFAT) in my 2019 X3 M40i with the Harman Kardon stereo. The flash drive is loaded with about 750 albums. All are in FLAC format and all are properly tagged (artist, year, album, genre, track title, track number, cover art). The car plays them without a glitch. Importantly for me, it plays FLAC gaplessly--i.e., music that transitions from one track to the next without an audible gap (The Dark Side of the Moon, say) is actually played back without any audible gap.
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