Replaced the distribution piece and installed a brand new compressor. I cleared the error and everything is now working. It has been one day and the error has not returned.

HOWEVER, the car is dropping when parked for greater than 6-8 hours (the rear is worst). When I open the door, the ride height instantly restores. I think there is still a leak.

I checked
- connection to rear air bags (air tight)
- distribution peice (air tight)
- accumulator (sprayed the connection of the hoses to and from the unit, no bubbles).
- rear airbags replaced with ones from ebay in May of 2016, here is the listing
for BMW E53 X5 00-06 Rear Air Suspension Air Spring Bag 37126750355 37126750356 | eBay

The bags still seem new could these air bags be the culprit? I sprayed the bag and didn't see bubbles.