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Sounds like progress. I hope it all works out well in the end.
You say they are putting in a new engine. I looked up realoem to see what BMW sells for replacement engines. They list a remanufactured engine (factory reman, nothing wrong with that) and describe it as a short engine. A short block designation has a common definition meaning block, crank, timing chain, and often some other parts, all below the head gasket. Usually doesn't include oil pan, for example. A long block, by comparison, generally refers to a short block with cylinder heads. A complete drop in engine could add in oil pan, valve cover gaskets, water pump, etc, depending on each manufacturer and their definition of complete.
Realoem calls it a short engine, but shows a picture of a long block (with cylinder heads). It would be interesting to know what the dealer installs. Be aware that it likely won't look new after they are done (all the external covers will be transferred over from your old engine) and that is fine, as long as you know what to expect.
Let us know how it turns out.
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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
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