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Thanks for taking time replying. I found the problem. The left rotating arm of the inner flap is cracked and broken. Unfortunately replacing the flap would mean replacing the whole actuator unit which around $110 (quote from local bmw shops). I will see if I can replace the part myself.
Hope everyone else' is still holding up. Not sure how this piece can wear easily as I only use AC MAX or re-circulation a few times a year, although the part is plastic.
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