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OK, let's get things straight. Why should a wire go heywire? Have you left the car at a bodyshop for a while to mend it after an accident. Have you recently been fitting any after market phones, Hi-Fi systems, etc? Have you had a part replaced such as an evaporator, etc?
If none of these have been performed lately, then a wire shouldn't just get cut left to its own devices. BMW cables, bus systems are super high quality stuff. Also, keep in mind that all shops blame a unit controlling the mechanical part at the time of a malfunction. Not necessarily.
Your EGS unit is in close touch with your DME (engine ECU) making sure full torque is not applied to the gearbox at the time of a gearchange, monitoring the position of your gear lever, etc, etc.
It is possible in this case for the EGS to have gone out to lunch. Two tests you may do:
1) Get your instrument cluster out and take both plugs off (the black one and the white one) and see if your box is acting any different.
2) Try this with an identical EGS. You do not need a carbon copy of your car. You may try it with the EGS of a 320, 325, or a 330. If you can get hold of a car as such, let me know and I'll guide you further!
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