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I have had similar issues trying to my car updated using the older UPD1004 file. Car simply won't recognize the software update. My dealer was also unable to solve this. I have tried several different USB sticks, reformatted using a Mac and a PC etc but no luck. The dealer spoke with the BMW engineer and I am getting a full software update next week to see if this will solve the issue. Good luck!
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2021 X3 M40i
1974 2002tii, Inka, 5 sp manual
BMWCCA # 327475
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