[HerkHealer]

This is exactly what I wrote earlier.
The DME detects any over boost or excessive timing and uses the OTA capabilities to send those parameters to the BMW cloud.

The DME controls and modifies EVERY electrical component on our cars.
So yes, you're correct that changing LED light colors does go through the DME, but that does not mean that BMW is "saving" of "flagging" that in any way to potentially void someone's warranty. They are more interested in finding out who is tuning their car and causing damages.
The day I met my SA, he advised me not to tune the car as BMW is now watching. Oddly enough, HE was the one who first introduced me to "coding" the car to my preferences.