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5 is always better than 3 for interior materials and quality, just like E will always be better than C in that regard, as you move up the size scale and price premium the nicer interior you will get.
The 3 is a sports sedan before luxury, and the 5 is a luxury sedan before sports in my opinion.
OP are you just looking mainly at opinions regarding interiors? Or are there any other aspects regarding the two vehicles your interested in? I've driven both the M340i and M550i so I can offer any opinions needed.
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Current Garage: 2022 Mercedes-Benz S 580 / 2023 Genesis GV70 2.5T / 2007 Mercedes-Benz E 350 / 1999 Mazda MX-5 Miata
Retired: '95 E36 325i 5MT / '04 E46 330i 6MT / '05 E83 X3 3.0i / '11 E90 335xi / '17 G30 540i / '19 F87 M2C 6MT / '19 MB CLS 53 / '20 MB GLC 300
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