Update for the community:
So here's what my service advisor has told me so far.
At first the techs found out that my driver's side rear passenger door sensor was faulty and causing the battery to drain all of the time and the tech's thought that a low voltage situation was causing the transmission to fail and give me the Red Cog.
After they replaced the sensor, the car was still throwing a transmission malfunction, so they decided to go ahead and replace the clutch position sensor which has already been replaced once. That didn't fix the problem.
I just authorized my dealer to take out my transmission so they can inspect the clutch and flywheel. I really think my clutch might be bad again. I really don't understand how my clutch can die again when I had it replaced 27,000 miles ago. I have never used launch control and I drive the car moderately most of the time. The only thing that I can think of that would have worn my clutch out is the fact that I live downtown where every day I drive from stop sign to stop sign and traffic light to traffic light.
In any case, my extended warranty company is Warranty Solutions which I bought directly from the BMW dealer where I bought the car. My service advisor just told me that my extended warranty company is not going to cover the cost of labor to pull the transmission out. Is this normal? The last time I had the transmission removed it was under the original factory 4 year warranty and I didn't have to pay for anything. Is this not right? Should I be paying out of my pocket for this work when I bought an extended warranty? I want to see what other board members here have to say before I call a lawyer.
Thanks for reading everybody, hopefully the problem is just my clutch and not the flywheel too. :crying: