BMW NA got back to me with their investigation results. Their findings was that the IHKA panel (the climate control) is the cause of this, based on previous complaints from other drivers.
They notified their parts supplier who makes this panel and its currently being looked at by the oem supplier.
Their solution was to replace the panel again. My initial assumption was correct, its a lottery if you get a good one or not.
My dealer ordered another one today.
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