That is a slightly older unit that ended production around May 2006, but it should be totally compatible with both Bluetooth and Voice Recognition. This part could have come from any number of cars, including an E46, E53, E83, or E85/E86.

My hunch is that he did not follow the pairing procedure. The fact that the R/T button functions, and if the "Telephone" option appears in the main navigation menu, then the module is communicating with the car.

Correction:

I must have mis-read the part number. Part Number 84.1-09 120 844 ended in March 2005, and it does not support Bluetooth nor voice recognition.

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2000 E38 750iL Highline Edition, Upgraded with the lastest 2006 X5 Electronics
MKIV Navigation, 16:9 Display, Bluetooth, TV/Video with Backup Camera, Sirius, and Aux Input