UPDATE
I went back to the dealer on Jan. 2nd to pick up the car and to work with a local attorney. California lemon law doesn't cover CPO but since I had the similar problem during the warranty period, if I could locate the paper he said he could work with me.
When I started talking with the service adviser I remained very calm and composed. When I asked why BMWNA refused to pay for the repair, he explained to me that since it is an audio issue because all the warning lights goes through fiber optics that goes through audio.
I really heard enough!!!
He changed his story and now he wants to try to fix the car three or four days. However, they cannot get me the loaner car any longer. I decided to give them one more try, before I resort to legal method. Now I am paying for the rental car.
I sincerely hope that they could fix the car but I really do have my doubt. At least I had some trust that they won't sabotage the car so that my attorney cannot win the case.
I will keep you posted.