In my case, it did, completely. I installed an OEM hitch and wiring on my 2003 3.0, following the BMW service instructions. There was no need to recode the vehicle, and when the trailer was connected the PDC was cancelled on the rear, lighting worked perfectly, and the BMW instructions referenced the stability control feature on the DSC.

Around 2005, some posters started noting that their trailer lights did not work after installing the OEM wiring, and the dealer had to reflash the vehicle. I don't know for sure, but it appears to depend on what software version the vehicle had, and what other options were installed. Current BMW instructions for newer models of the X5 talk about a reflash possibly being required. If you install the OEM wiring kit, and the trailer lights work, then nothing else is required.

I installed the OEM wiring kit on our X3 two weeks ago. It is the same electronic module as the X5 uses, and the instructions I used were issued in 2009. Those instructions specifically noted that no vehicle reflash was required on the X3.

Hope all that helps.

__________________
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