I have the same issue, and the dealer has acknowledged the problem. They ordered a new seat for me, but they are on backorder from Germany. They estimate 4-6 weeks. But they will fix it.

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11 E70 x35D
07 E92 335i*
05 E83 X3 3.0*
02 E39 540i*
92 E36 325i*
* Retired/Sold