Thanks for all the feedback and help guys!
It looks like the new cap is also prone to leaking as well. For now, I bent the arms down on the cap until I find the rubber gasket material thick enough to seal it tight. I really don't like going to the dealer for anything ...so i'll probably fix this myself.
As for the peeling,.....I don't think the dealer is going to make any effort to correct it.
I don't know why BMW painted the inside of the cover? To insulate it from the heat? They had to know that it was going to peel eventually.
I think I will DIY a cover painting project next time i change my plugs.