So....I started this thread and had gone back to say the BMW filter "snapped" in further, well.....did the oil filter housing gasket a couple of weeks ago and checked on that "genuine BMW" filter and it was just as crushed and twisted as the Mann filters I used to use.
I can't figure out why, really searched to see if anything was holding it up either in the cap or the housing and can't see anything.
Thanks to those that have said they have seen the same, at least I am not alone.

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2004, X5, 3.0, 202k+