The actual text of the letter states that the monitoring of the oxygen sensor heater is incorrectly disabled in the engine management software which means the check engine light (MIL) won't illuminate when the sensor is determined to be malfunctioning, as required by the ODB standards. That means you could have a faulty engine component, but be unaware since no engine fault code was triggered. That's why BMW would like you get the updated software to ensure you don't inadvertently do damage to your engine.
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