Plastic impeller in the water pump.
Ask what work has been done to it.
No personal experience with it, but a search reveals:
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The early M50 engines (up to mid '96) used a water pump with a plastic impeller. This is known to fail and cause EXACTLY the symptoms you have. If you don't know if it was replaced with a newer one with a steel impeller (or BMW's new plastic impeller one) - this is a real possibility. And when this goes bad - it doesn't leak and it doesn't make noise. What it can do is really screw up the system if the impeller breaks up and chunks of it circulate around to be lodged in the system blocking flow even after you replace the pump.