How were they testing the wiring? I assumed that your bike was connected to the proper diagnostic machine for that model which would be able to run through all the circuits one by one. If this was the case then the diagnostic program is not thorough enough. Considering the entire bikes electrical system is based on electronics (Canbus) I'm surprised that the diagnostics is not foolproof and the only way to check the loom is to replace it with another one from a similar machine which, with the benefit of hindsight, is what they should have done.
I wish you luck with your quest. From what I've heard BMW customer service has gone downhill at the same rate that the price of their bikes has risen.
And thanks for posting your story - it all helps to convince me that riding a 24 year old bike with very few electronic parts (for which I have replacements under the seat) is the best way to go.
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