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Andrew, is your vehicle still under warranty? My concern is that if it is not under warranty, they may put you through the ringer.
Seems the exhaust gasket/sensor would have absolutely nothing to do with transmission system. Your reference sensor may be bad though, ask them to check that.
BMW's have excellent tranny's and it is not popular for them to 'go bad'. Although my dad's did - it was a lemon so it can happen, just not often.
Let us know what fixes the problem and good luck.
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