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Update: Returned back last night and tried to set up the digital key on my iPhone. Multiple attempts failed with the error message:
Preparation Status Error
Digital Key service unavailable during vehicle set up. Please try again later.
Hint: Make sure you have a stable, strong internet connection
I've tried rebooting iDrive and also reinstalling MyBMW app with no success.
Admittedly, this has been a less than ideal experience and BMW dealer has not been much help. One told my car didn't have the capability (which is not true).
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