Auto hold is on the park brake, not the service brake.
Mercedes' system that was the primary applier on the service brake was recalled, I think, and then subsequently cancelled.
BMW uses mechanical application from the pedal, but the Electronic Brake Management system is obviously electronic. It doesn't prevent mechanical actuation from the brake pedal, but it can apply or release the brakes for a variety of reasons. The most obvious is ABS for anti-lock, but also Dynamic Stability Control (DSC), Dynamic Tractional Control, Cornering Brake Control, electronic brake force distribution (EBFD), and the Start-Off assistant for manual cars, all apply the service brakes electronically. The Soft Stop function reduces body dive by cutting back brake pressure shortly before the car comes to a standstill. Fading Compensation sets off a decrease in brake performance by increasing brake pressure to maintain the same level of deceleration for a constant pressure on the brake pedal. Brake Standby builds up brake pressure more quickly in an emergency by bringing the brake pads up to the disks when the driver releases the accelerator. The Dry Brake Function periodically wipes the pads against the rotors when the rain sensor senses wet conditions.
I think that with that much intervention going on, it is not surprising that the brakes don't always react exactly as each driver expects. The initial grab is likely due to the Brake Standby function, for example (just guessing here). I know that with my 535, there is a noticeable benefit from the Soft Stop feature, similar to what anti-dive suspension systems brought years ago, but even more so.
I don't think that the above systems can be tuned for individual owner preferences, but I could be wrong. A tech would know for sure.
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