The free security upgrade ain't free! I applaud BMW for being proactive about it but it comes at a price when you need a key. They get you one way or another.
I do not know if you can back it out. Could be it has a logic bomb built in for that as well. The idea is to defeat the crooks so they may have thought of them backing out the upgrade. I guess time will tell. It was applied to LCi and beyond if the customer requested it. So not everyone will have it. Our vehicle started as a dealer owner's vehicle.

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2021 X5 xDrive40i
2015 X5 xDrive35i MSport
(Traded) 2013 X5 xDrive35i