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I just recently went through a brake squealing issue with my car at the dealer as well.
From the dealer I received the same canned response that all you did as well. I agree that for most part, a little squealing is to be expected due to the performance oriented pads our cars use. In my case, the squealing was excessive and happened all the time. It was honestly embarrassing. Still, the dealer was steadfast in their response and told me that BMW would not do anything because this is normal.
I eventually needed to bring my car in for an unrelated issue (gotta love these cars), and I brought this up again. The SA agreed to look at the brakes this time. It turns out there is actually a recall for faulty sensors and mine had been installed wrong. The sensors were sticking out further than the pads causing premature plastic-on-metal contact. They replaced the sensors and the pads and now there has been no squealing at all. I suspect that as the pads wear it may come back a little, but the original squeal was awful.
Anyways...long story, but anyone with excessive squeal should mention this. The SA went on to admit that around 1 in 4 cars that he looks at with squeal turn out to have this issue.
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