Well, with the X-drive transfer case there are clutch packs internally that transfer power to the front wheels, and en electric drive motor to activate the clutches. If the motor didn't work, the wedge/pressure system bearing or the clutch plates are worn it wouldn't be able to transfer the power. You may need to have the case replaced. BMW can not rebuild them or even get the parts individually, so replacement is just about the only option you have unfortunately (if this is the case)

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