Updating this for completion.

The transfer case module was faulty on the X3. I had the OP buy and install a used transfer case module, and I remote flashed, coded, and calibrated it to the car.
This takes an array of lots of tools and software.

Everything worked correctly after that, no errors remaining, and wheel hop was gone.

I have seen this before, but have no real explanation why the original module was stuck on full lock for the front wheels.