your transmission is stuck in mechanical limp home mode, the clunk you hear is full pressure application to the clutches.

The only way you can reset that is with a good tool like a star, a launch diagun, an autel maxidas or carsoft etc. Its deeply embedded into the CAN and needs a specific interrogation to be reset from the 38 pin port in the engine bay. Your 16 pin OBD tool cannot perform this interrogation.

If you dont see the gear position readout on the gauges your shifter is bad - the transmission control unit is sending a CAN signal to it but getting nothing back - hence no release from park and no shift - you are stuck in 2nd gear.

This is the very reason I dont ever use the drink holder in my car, I just assume its like my old W124 - no holder at all.

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2012 BMW X5 (Beef + Granite suspension model)

1995 E300D - The original humming machine (consumed by Flood 2017)
2000 E320 - The evolution (consumed by flood 2017)