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I also had a seized turbo valve in my 535d which effectively stopped the small turbo from working. The car had no power at all below about 2,500rpm where the large turbo started to work. There were no fault codes or dash warnings. The dealer replaced the front section of the turbo manifold (furthest right-hand piece in attached picture) under warranty as well as a few other things like the vacuum pump.
My car is doing something similar again now, although intermittently and is back with the dealer. It's quite a common problem on the x35d engines from what I've seen.
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