Yes, this can cause a hydraulic lock.

The head gasket separates the cylinders from the coolant passages from the oil passages. It depends entirely on which portion of the head gasket fails.

If it fails between the coolant and oil passages, the result is coolant in the oil sump or oil in the coolant.

If it fails around the cylinder the result is a loss of compression.

If it fails between the coolant jacket and cylinder, the result is usually bubbles in the header tank (when running) or coolant in the cylinder (after the engine is shut off). That latter one is the one that can result in the engine not turning over.

A hydraulic lock is usually catastrophic when the engine is running, resulting in bent rods, etc. A hydraulic lock when the engine is stopped usually just means it won't turn over until the sparkplugs are removed so the water can be pushed out.

Given the intolerance of BMW engines for overheating, all of the above is often followed by a cracked or warped head.

__________________
2007 X3 3.0si, 6 MT, Premium, White

Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue