Just came across this on another forum by an actual mechanic, might be of use to you
Finally the results of my testing are in. This is a well known and common issue. The B58 is fitted to the M140i amongst others. It’s very common to remove the oil filter cap and discover the oil filter in pieces. I’ve certainly seen a few myself! The filter design is unusual. The lowest piece has a plastic washer with a large external O ring. The uppermost end has a small internal O ring. It’s common when removing the cap to find a shredded end comes out with it, leaving the rest in the filter housing. I’m now sure that the problem starts at new oil filter installation. It’s usual practice to fit the filter to the cap and then screw the whole lot into the housing on the engine. Don’t do this! I’m convinced that when the large O ring meets its register the rotational drag increases beyond what the paper element can withstand, and it tears. Consequently you run a whole service mileage with a ripped oil filter. I’ve done a few now where I’ve lubricated both ends of the new filter, fitted the filter to the engine and then screwed the cap into place over the fitted filter. Now these cars are coming back in for oil service and the filters are coming out intact. The dealers are doing it wrong in my opinion. Might not be many people out there doing their own servicing on these yet, but hopefully this might help in the future