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That's crazy that they found the reason to be sludge at 25k.
Seeing as you had oil leak after that accident, maybe it was more severe then you thought. Possible unseen damaged to internal parts or accident introduced foreign debris that went hidden in some gears or something crazy like that.
I hope BMW took pictures of what they found and maybe saved it for inspection.
Hopefully you're able to make a claim with your insurance.
How long have you had the car before this? Was it running fine before accident?
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