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Well good news folks.
There is now an update for the factory remote start module for the car. As the remote start is a dealer retrofit, this fix should be covered by warranty (there is a two-year unlimited miles warranty on all factory parts and labor) but I do not have paperwork because they couldn't figure out how to bill BMW for this yet. The service foreman's explanation is that BMW sent them (the dealer) a physical thing of some sort (I don't know if it's a flash drive, a new ROM chip, or what) that they plugged into the remote start module to update it. So now it works perfectly.
And they also updated everything to the latest ISTEP integration update and the remote start still works fine, so looks like they fixed whatever bug was in the system.
Still no ConnectedDrive app support though. Good news for those of us that held out for this long without getting a refund.
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