So I finally had a chance to check things around. Did a cold start and verified compressor clutch and it was stationary. Aux fan was also not running. Turned on Max AC and compressor clutch engaged and spinning. But no cold air and aux fan stationary. Verfied compressor clutch again by turning AC off and then back on.
Waited for about 2 or 3 minutes and still no cold air and aux fan stationary.
Closed hood and went for a drive. Shortly after driving there comes the cold air.
Back into the garage and noticed aux fan running.
Connected gauge and read a little over 35. Bmw dash showed outside temp of 68. Seemed about max so did not recharge.
Just as sanity check turned off AC and both compressor and aux fan stopped.
Turned AC back on and both compressor and aux fan running. Also AC is blowing cold air.

In short, on a cold start turning on AC while car is stationary there is no cold air and aux fan not running. As soon as I start driving AC starts blowing cold air and also Aux fan starts spinning.

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06 X5 3.0i