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Considering my 4th or 5th BMW project. I usually fix them up nice, drive em a while, then sell for a bit of profit. Gaskets, clean, detail, etc. The one I'm considering now is drivable, just has the error listed and no steering assist. From what I can tell, the "dynamic drive malfunction" is typically due to low power steering fluid. That also explains the lack of power steering. Just curious if that could be a sign of anything else major though. I'm not sure if the current owner knows a power steering reservoir from an oil cap.

I would go in to it planning to do the typical gaskets as well as a power steering pump, and repair any leaks in that system if applicable. Hard pass if it's turbos though. Not doing that again on a 535i. Lol.
 

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2006 530xi 6 MT
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I've seen a number of posts over the years where the hydraulic motor that drives the active sway bar for the dynamic drive is leaking.
 

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One thing to watch for is that you don't use ATF or power steering fluid in the reservoir, Dynamic Drive uses CHF11S and it's pretty common for the flimsy little label on the cap to fall off.
 
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