The only part of the heading of your first attachment which I can read is "Services not Authorized by Customer, and the text BELOW the Line Item for "Steering & Suspension" is "Preventive Maintenance - Suggested". You may call me "picky", BUT as a retired lawyer with an engineering degree, IMHO, WORDS are supposed to MEAN Something.
The official failure is on page 2 . My bad, as they say!
In my "Lexicon", work NEEDED to Pass Inspection, is NEITHER "Preventive Maintenance", NOR "Suggested" repairs. A "Safety Inspection" is conducted (ostensibly) for the safety and welfare of the owner of the vehicle, his passengers, and other users of highways who may be affected by owner's operation of that vehicle. "Rejection" of the vehicle in the inspection should NOT be arbitrary or used as "leverage" to extort money from the "mark/Inspectee"

(You IS the "Inspectee/ Stuckee ;-).
I interpret the guidelines that they can't fail me but should issue a rejection or advise me of the need for the repair. The rejection is unofficial and purely informative.
As you noted in earlier thread, the two part #s in the invoice are Dorman Part#s, NOT BMW part #s, and the First number is NOT correct for 2006 325i. Entering that number (520-919) in Amazon Search quickly discloses that. So that's SEVERAL warning lights going off regarding your "Invoice", and my BS Meter is pegging.

Personally, I would conduct my OWN inspection, and NOT rely upon that Shop for ANYTHING, unless prior business relationship suggests the current "misunderstanding" can be corrected, and Shop takes steps to do that in a fair and "Transparent" (hate that buzz-word -- HONEST actually is the correct word ;-) way.
If a test such as shaking a "jacked wheel" discloses excessive play, the NEXT step is Identifying the component that needs to be replaced. Leaking fluid from a "Liquid-filled bushing" on the Radius Rod/Tension Strut can identify an issue with that bushing that results, will soon result, in excessive movement at the bushing. But there MUST be some demonstrable, objectively-determined, fault in the "Steering & Suspension", to "Reject" the vehicle in a Safety Inspection. Any Safety Inspector I have ever had find an issue with anything will SHOW me what he found.
I ONLY have a vehicle inspected at facilities such as a gas station where I can stand at the Service Bay door and respond to any questions or issues, and I get to know the inspector, or his predecessor, and make sure they know I do my own repairs. I don't mind shops knowing "I'm Cheap" -- that saves a LOT of $money$.
I am with you 100% on that. In the summer the garage doors are open at Firestone and I'm right there watching and asking questions. I could see my car from the waiting room window but it was 5 bays down. When I saw him repeatedly going back to my car I got increasingly concerned.
Also why I hate the dealership with no way of keeping an eye on ones car. I'm sure I am not the only paranoid soul out there who would appreciate the installation of video cameras to view ones "little baby" during treatment.
I realize that "Customer NEVER seeing the tech" is the formula used by many/most shops these days. THAT is maddening to someone who understands his vehicle and does his own work. The "coincidence" that SA (Service Adviser) are the first two letters of "SAlesman" MAY actually NOT be a coincidence, at least in some shops.
So when I went to the dealship this morning asking the service manager about failing ball joints as a reason to fail a safety inspection, the SA really didn't want to get into it. He mentioned the word discretion. Shut up when I showed him the list of items that cannot cause failure. At that point he recommended making an appointment for a reinspection. I then mentioned that the website offered a free coupon for a SECOND OPINION if you bring in an invoice from another shop. He walked away and told me I can make the appointment on their websie.
For newbies like me, I also went to the parts department because I didn't realize the nut for one of the bearing bolts was intentionally oval. I could not understand why I couldn't thead it on the bolt. And of course its supposed to be that way. What fooled me was that the captured nut for the other bearing bolt easily threads onto the bolt.
"Bottoming" suggests shocks and/or struts getting worn, but unless there is "bouncing" or "Un-damped" spring movement, that is NOT really a safety issue, and certainly has NOTHING to do with the two suspension parts named in the "Suggested Preventive Maintenance".
Please pardon the RANT, and please let us know how this turns out.

George