failed ignition switch
 

I took my 2005 x5 3.0L to the dealer (cuz the mechanic was quoting me a price higher than the value servicing price at the dealer) for the following alerts: "check brake lining" and "check lowbeam".

i had the Front brake pads, sensor, and discs changed. I had the rear brake pads and sensor changed.
i had both the headlight bulbs replaced (regular bulbs, not HID/xenon).

The dealer says he couldnt start my car. The issue was not the battery because they tried starting it with a new battery and it still did not turn on.
the dealer says it was a failed ignition switch. i have not had any issues or warning signs of this failing. the dealer said that it is a wear and tear item and that he cannot cover the cost. he charged me an hour of labor ($152) and the price for the part (approx $130).

is it normal for the ignition switch to fail without any warning?

Wow, sounds very shady, but how can you question them? That sucks! That labor rate is amazing. Guess you have to suck it up

Yes, that can happen, not much you can do, you either trust him or you don't and don't go back.

whats worse is that i brought the car home and now the windshield wiper fluid is leaking. the dealer again said that its not his problem because he did not do anything with the wiper fluid reservoir.
definitely dont trust this dealer anymore but is there anyone i can report the dealer to?

Winshield washer leaking is also a really common problem. Sometimes even looking at the washer grommets will make them leak, especially when it gets colder.

it doesnt seem suspicious that this all happened together?

Nope, I would say he is probably honest. Hopefully he did a good job on the brakes and maybe give him another chance. I think if wanted to rip you off there would be much better ways to do it.

Another good sign would be that he gave your old ignition switch back.

he did not give me my ignition switch back. i should have asked for it but i forgot to ask for the old switch.

Not unusual for ignition switch to wear out. Sometimes there are symptoms for a period of time and sometimes they just crash. Quite possible they could have gotten it to for a few starts if they played with it but you would never know when the next time it would happen. As many miles as most have on E53s the switches are worn. The ramps in the switch that close the points are just plastic. Even if you had the old switch you can't really tell if the correct points are opening and closing as they should.