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I suspect your issue is related to the thrust bearing on top of the shock being an issue. If the thrust bearing isn't tight enough or the dealer didn't put back the washers in the correct order it can cause the issue that you are experiencing. The dealer obviously doesn't want to check that area because it would require them to pull the entire front shock off the car again. I would bring it to another shop and let them get a go at it. If it turns out it was a faulty install then talk to your bmw dealer to have them reimburse you since they f'ed up and couldn't find it.
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