Thought I was alone. I have a X3 2011 with a similar problem. Dealer brushed it off and nothing was done. He said it's better on mostly instead of off. Attached pictures show under very bright noon sun headlights being on (as shown by the green headlight indicator).
I have also captured the headlight switch in this photo as a proof that it was set to auto
2011 X3 2.8 Alpine White / Chestnut Interior