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The problem is fixed!
I had another e-mail from the dealer on 27th April quoting some investigation that BMW technical had done. They were saying that sometimes although the "Data Transfer Failed" message appears it is in fact updating (that was definitely not my situation). Also that sometimes there will be no artwork displayed for the CD (I understand this and it has happened for a couple of my CDs).
Anyway, without much hope, I thought I'd try it again - and it now works!
So, my thinking is that there was no problem with the car (although I did update connected drive (Select Connected drive, Press options button on idrive controller, Select and carry out update)) and that the problem was at the server end and is now fixed.
I notice that the connected drive app has just been updated so maybe this is part of a connected drive upgrade.
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