Not sure if it's the same thing, but I had something very similar happen a couple of times with my 1st gen X1. I had the same sensation you're describing; majorly disconcerting. I went straight to my dealership and they said some kind of built-in safety system had been activated, which effectively limits all kinds of functions. It shows up when they read your key, although not necessarily why it was triggered. It really freaks you out for sure, but it never amounted to anything (for me)...
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