I had this on my E46 2002 320d, my local Independent BMW specialist plugged in his diagnostic kit and diagnosed a faulty sensor. He had to remove the rear bumper, change the sensor and refit the bumper. Cost me £52+vat for the sensor and about 45 minutes labour so about £95 all in. I think a dealer would be at least double that.
Obviously it may not be a sensor but they tend to go.
Where are you? Do you have a good BMW spacialist near you?
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