Well Iifted up the plastic shifter cover to inspect for anything off under there to discover the infamous cable bushing that appears to be broken and missing on one side with a good amount of free play when moving the shifter. Would this explain my issues? Check out the videos. The 2nd video is when it is to the left in sport mode. Photos attached are from an e46 forum post.

https://www.dropbox.com/scl/fi/xrxh0...=ey0wu2nk&dl=0

https://www.dropbox.com/scl/fi/5a2xr...=1rc4r8cz&dl=0

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02 Imola on Black Dinan S2 4.6iS
00 RoyalRot on Sand/Black 740i Short Sport