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If your N63TU consumes more than 1 liter in 1,000 miles (I assume they extrapolate the consumption to what would have been burned at 1k if you bring it back at a lower milage), the engine is deemed to have failed the test and eligible for the repair/replacement under Isley.
I took my '14 X5 back to the dealership on Thursday and they determined it had failed (I returned it at 930miles and dealer said it consumed 1.5 liters). I had intended to wait for the car, assuming that it would be a pretty cut and dry "yes/no" and that I would have to go on a wait list for a new short block, but it actually is a more complicated process involving quite a bit of testing.
Yesterday afternoon, so a full day later, my service rep let me know that they had completed all of the testing required by BMW NA and submitted the reports - now awaiting next steps/work authorization from corporate. I know they performed compression tests and analysis of various seals and gaskets - not sure what else.
I'm guessing the open question is, at BMW's discretion, do they authorize a rebuild attempt under warranty, or deem the block damaged and proceed to offer a pro-rated engine replacement per the Isley agreement. Will update when I know - hopefully Monday!
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