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Try this: (im sure you know where the traction button is, right?)

Well, push it and hold it for like 5 seconds...my uncle's E46 325i has the same thing. So you push the button, the traction light comes on, keep holding it, and the emergency brake comes on. That's when it is completely off. give that a try and let me know how it goes. im pretty sure that will do the trick.

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Q: 2001 e46 BMW m3 when do you kn when the traction control is off?
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