Yes, as they get older they start giving false readings. My E46 M3 had both an oil level sensor and a dipstick. I'd get a low oil warning when the actual level measured by the dipstick was halfway between MIN and MAX.
If you do your own oil changes, you can do an electronic measurement just before, and then physically measure how much oil you drain out. From that, you can correlate the displayed oil level with the actual oil level.
A forum community dedicated to BMW owners and enthusiasts. Come join the discussion about Bimmerfest events, production numbers, programming, performance, modifications, classifieds, troubleshooting, maintenance, and more! Bringing the BMW community together.