Saturday morning rolled around and I decided to start taking the bike apart and figure out what's wrong. BMW was right, it is a pretty easy bike to work on. Sure is nice to have access to the shop manuals and online knowledge as opposed to something newish that a dealer is required for help.
I got things stripped down pretty quickly so I could figure out what went wrong.

Block.jpg (102.06 kB . 767x576 - viewed 5 times)As far as I can tell, the head gasket had a breach at the bottom of #1.

Cyl1.jpg (81.87 kB . 767x576 - viewed 5 times)Once I got it cleaned up, it looked like the casting was questionable. Like the surface area in this spot was minimal, so maybe the overheat event didn't take much to create the problem? I don't know, I'm spitballing. I never opened up one of these engines before, but this looks pretty iffy for QA.

20260912_225651801_iOS.jpg (59.61 kB . 768x504 - viewed 5 times)I was also concerned that the head was warped, and maybe it is, but I have a granite surface plate in my shop, so I glued down a sheet of 1000 wet or dry and gave it a look. Not shown, but I painted the surface with Dykem just to see. It looks pretty good other than where some corrosion occurred.

Head.jpg (74.33 kB . 767x576 - viewed 4 times)Everything else I took apart looks good, so I'm going to order the new head gasket and the pump rebuild kit, and see what happens. I didn't notice any damage to the cam journals or the cylinder walls.