E46 transmission works fine but with P0735

[bavareze]

Hello,

Immediately after I start the car (even when idling in Park) code P0735 Gear 5 incorrect ratio comes on.

Maybe it is related or maybe not, but the small LEDs indicating where the the selector level is located light pretty much randomly (is there any fix for this?) but the range selector in dashboard displays always correctly.

I researched P0735 and found out it should be there when the ratio between input and output trans shafts is not the ratio expected for the selected gear. However, with me this code shows even when idling or driving in 1st or 2nd gear. So car wouldn't know how the ratio is in 5th gear since I am not using it.

Ideas?

Thanks