Transfer case, CV joint, differential or driveline? All of these components have play in their assemblies. Any of these can make noise. Rotating a wheel rapidly back and forth is not a normal function. I'd expect and have experienced some noise rotating a wheel into position.

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8/2011 X5 xDrive35d Sport, Black Sapphire Metallic, Black Nevada Leather, Fine Burr Walnut Trim
2/2001 M5, Jet Black, Exclusive Complete Black Walk Nappa Point Heritage Leather, Black Cubic Trim