2006 325i BMW with ~24,700 - BRAKE failure and Steering Angle sensor failure MYSTERY


#1

HELP! I am hoping this is a mystery that cannot be ignored by this group.

This car has been babied - taken care of - serviced on time. It had been garaged until a year and a half ago.
Not sure if this matters for the story, but the battery died and was replaced a few months ago

THE STORY:
Recent service at brake specialist -BRAKE FLUID FLUSH AND INSPECTION- something dot 4 fluid used, no leaks identified, brake pads good, not other issues with the car identified.
Oil change same day at separate facility - Jiffy Lube - inspection of brake fluid reservoir and test with electron moisture content sensor done - findings were BRAKE FLUID GOOD

FLASH FORWARD ONE WEEK…

Car parked on curb in front of house. Quickly get into car on rainy day. Drive to the end of the street - two house lengths away - apply brakes - BRAKES FAILED.
Returned vehicle immediately to brake specialist since I assumed they did something wrong.
They found damage to the drivers door (that I didn’t see when I quickly got into the car in the rain).
They couldn’t diagnose the brake problem, but did find that the steering angle sensor failed.
They reset the steering angle sensor and reproduced its failure, repeatedly
They found that when the STEERING ANGLE SENSOR FAILED the brake pedal dropped and softened but couldn’t conclusively determine what happened to brakes
They suggested based on the damage to the door it was related to the issues now since they didn’t see them before and damage was parallel with steering column
They advised taking it to BMW specialist
Picked up car and sure enough car had been hit when parked on the street in front on my house.
Insurance contacted, car towed to an authorized insurance repair center
Authorized repair center could not determine what was going on with brakes and said it had to go to the dealer for diagnostics.
They also said they couldn’t see how the damage was caused by the car getting hit and said it was unlikely it would be covered.
Just over a week the car stays at the authorized repair center to fix the door damage - a new door was put on.
Authorized repair center then took it to the dealer.
Initial diagnostics confirmed that the Steering Angle sensor failed
The dealer test resulted in fault codes 0094B6, 0094B5: DSC Steering column switch center internal fault. Code 005E43 DSC Steering Angle sensor adjustment.
Dealer performed test plan “DSC steering angle sensor” and determined the steering angle sensor internal fault is stored 13 times and the steering column switch cluster is faulty
Dealer recommends replacement of the steering column switch cluster and reprogramming
Dealer initial inspection of brakes found the brake pedal spongy and had excessive play
Dealer checked the brake fluid reservoir and found fluid level full, with BRAKE FLUID IN POOR CONDITION AND RED IN COLOR
Dealer RECOMMEND BRAKE FLUSH

Insurance is telling me it is not accident related and will not pay - I have to prove issues are the result of accident
BMW NA will not assist either until liability is determined

A separate BMW expert cited three links to the accident that could have caused some of the issues currently happening: 1) the impact to a stationary car could cause jarring that could damage the sensor, 2) the wheels may have been turned out when it was hit and shifted abruptly affecting alignment and steering, and 3) when the car was hit it may have been dragged and rocked hard against the curb, further affecting alignment and steering.

But my insurance company told me I could have gotten this information from anywhere and it doesn’t mean anything.

So the mystery…
How does a car that has been driving perfectly prior to an accident, coincidentally have steering and safety issues after being hit?
How does new brake fluid go bad after a week, assuming it was bad at time the brakes failed. Or go bad after 2 weeks when the dealer looked at it?

What is your opinion
Do you think the issues are related to the car being hit? Why?
Do you think the issues are not related to the car being hit and it is an inherent problem with the car? Why?

YOUR HELP IS APPRECIATED - many thanks