[kach22i]

The paper element came out cut like that?

Very weird.

Did a Google image search and found this, a 2007 post.

non-BMW oil filter on new to me 330i ......

Originally Posted by dembooks

William, Good start to a healthier motor
using BMW MANN filter specific to synthetic
oil and extended oil change intervals.
That plain paper thing you removed would
eventually turn to a brittle, crispy, black,
fractured mess. The BMW Mann filter is:

"MANN+HUMMEL developed and introduced the above mentioned Long life-Filters - equipped with a new advanced filter media that allows the increase of service intervals paralleled with better filter efficiency, especially when using synthetic oils. They are also resistant against the new generation of synthetic oil. Please see the car owner's manual for the service intervals, which applies for the specific car.
MANN-HUMMEL (better known with its brand MANN-FILTER) is an OEM supplier for BMW"

A word of caution about using oils other than SAE 5W-30,
ACE A3/B3. Your VANOS cam timing system depends on instant
reaction times in all temp. Other 'thicker' oils will decrease
VANOS performance and possibly create poor engine running and
electronic fault codes.

Welcome to the E46 family.

c.d.

Also found this Pelican Parts tech article which may have some information buried in it.

BMW Oil Change
Wayne R. Dempsey
Pelican Technical Article: BMW Oil Change