Since iOS 16.5 Audio Playback Issue from the USB Port on my BMW

I have this issue on my 6/2016 production BMW 2 Coupe (F22) NBT EVO. I've first had it with iOS 16.5 on my iPhone XS Max. Before iOS 16.5 everything worked flawlessly, afterwards this issue started where either I can't play music from my iPhone when using the center armrest USB Port (only one in my car) or it would start playing, get stuck midway through a song and then drop out.

The USB option under "External Devices" on iDrive would grey out and in the following order would display "Not connected", "Reading" and then "Not Supported", finally sometimes again "Not Connected", couldn't switch back to Bluetooth. Whenever I tried to switch to bluetooth after the disconnect it would just say "Attempting to connect to Bluetooth device" (or something along those lines) and it would not do it. I tried a lot of cables for the center console USB Port. I had the Apple Original cable, I bought the BMW MFi cable, it solved nothing. The bluetooth for telephone works flawlessly.

The only way I could end this cycle was reseting iDrive and iPhone but it would begin as soon as they turn on again. USB port on the center console is working fine with other devices including a USB drive with my music library is on.

The car is running the latest available software from BMW, it currently on I-level F020-23-07-530 updated by the dealer and also the latest update on the https://www.bmw.com/update which for my car according to my VIN is UPD09051.

The issue persists, now I have switched to iPhone 15 Pro Max and currently running iOS 17.2.1 as of today. again with different cables (Anker, BMW etc.) the same issue persists.

I hope Apple can address this issue, its quite frustrating...