Update: X3 is back from the dealer for this problem. Took 2 trips, 4 days total in the shop to hopefully completely resolve. <fingers crossed>

What was done:
1.) First trip in, fault codes were indicating wheel speed faults in sensors in tires. However, the actual sensors tested out fine. So, tech swapped them in the tires to troubleshoot. Issue returned as soon as I left the dealer.

2.) Trip two. Dealer decides to replace DSC module. Takes 3 days to complete work. Hopefully, finally resolving the issue.

However, quick drive home from the dealer now the brakes are feeling very very soft and engaging when the pedal is almost on the floor. I am reviewing the paperwork now and see that the brake fluid was changed during stop 2 at the dealer. Not sure why this would be done while replacing the dsc module but it is probably related. The saga continues .... Errrrrrrrrrrrrrrrrrrrrrr.