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There is a lot of info that we would need to be able to understand what happened. I know there are a couple of different systems that BMW uses in their cars depending on how they are equipped and they activate in different ways. Are you sure they were all on/active and how are they setup?
My M3 frontal collision warning never comes on in a situation like this. It only activates after a certain speed and will not brake the car all the way to a stop IIRC. I believe our M550 is the same as it doesn't have the DAS package.
Any way, as others said, I'm glad you are ok. But, you said you were in heavy traffic moving slowly, were you not paying enough attention to just hit the brakes yourself?
Below is right from BMW's website about the DAS.
"DISCLAIMER: This feature is not a substitute for the driver's own responsibility. Due to road, traffic and visibility conditions, the driver decides whether and how the system is used."
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