Sounds like the throwout bearing from the symptoms you describe. Cheap part, but not cheap to get to.
That said, if you DIY with a friend it's a single day project.
And 68,000 miles, I wouldn't do anything else while in there other than maybe the pivot pin. I would use an OE BMW bearing.
Might not hurt to do the CSB and guibo while you're have the shaft dropped.
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2005 M3 Coupe, 2004 M3 Wagon, 2001 M5 Sedan, 2008 M5 6MT Sedan, 2012 128i M sport
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