I bout a 07 X3 6 speed transmission the first week of December before purchasing the vehicle I did the normal listening to it and had a local shop take a look at it and they said all good to it and no sounds whatsoever came up. I drove it home a couple of hours and also drove it around town before changing the Oil and doing a coolant flush and two new O2 sensors. I reassembled this car after the work I did to it and I hear a low knock similar to a rod knock when I crank it up

. So I take it to my mechanic and he thinks its a clutch issue or an input shaft issue in the transmission so I leave it with him to let him look at it more. The issue is causing the knocking sound and also when you turn the car off there's a cur-clunk while the engine is slowing to a stop. He calls me and tells me that hes felt the transmission everywhere and that there's no vibration and that he can feel the transfer case thumping alongside the audible knock that started this whole issue. I get him to take the transfer case out and there's about 3/4 inch of metal shavings on the plug and magnet and more in the fluid. I have taken the transfer case and no one will look at it cause they say that there are not rebuild kits out there which is hard to believe. I came across this
https://www.autopartswarehouse.com/s...ProductContent that I was thinking may work if it can be used with a manual transmission. I looked at the actuator gear and its a little worn but not anywhere like the ones that I've seen online that have caused a fail. There are no dash lights on except for the check engine light that states that I have a problem with the gas cap. Any one ever heard such crazyness? 124,000 miles.
Is the transfer case for the Automatics the same used in the Manual transmissions?