Received a call from the Inde that is workin on the no highway heat in the X. He says after checking everything twice and not finding any error codes or other issues that he swapped out the water valve with another X that he had access to and found that it worked correctly. This was after a 7 series came in with exactly the same problem. Says been serviceing BMW's for 20 years and has not seen this symptom before.

He has ordered a replacement and promises a warm X on Friday. I am hopeful but not holding my breath. Will post final resolution when complete.