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Yes, I believe it was m3U format. At one point I used iTunes to spit out the playlist, but I remember having to edit the playlist line by line to get it to work properly.
I still have not found a hassle free, seamless way to do it.
Now, I use my iPhone connected in the car to play the music. I would prefer to use the USB, but the iPhone play is just less hassle.
I think this should be upgraded by BMW, their system should be more flexible with file formats and locations.
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