Well... took it to the dealership, and got what I expected... complete denial. To demonstrate the issue to them, I held on the front brake and let out the clutch slowly with some descent throttle. The clutch screamed like a banshee, and the mechanic said "Oh! That doesn't sound good at all!". So I left it with them for a week. When I went to pick it up, they had set my clutch back to the horrible factory location, which is at the very end of the lever release. Then proceeded to tell me that they didn't hear it. They further denied the issue by stating that holding the front brake on while throttling isn't normal use operation. To which I replied, I only did that to demonstrate the issue, which it did perfectly. They just stared at me blankly, and I knew they were full of sh*t, and weren't going to address the reality of the problem whatsoever. Looks like BMW is banking on this issue lasting through the warranty period. I reset my clutch to engage at 1/2 release, which make this bike soooo much better from a dead stop! Gets ride of that annoying stall issue nearly instantly. It does make this squeal more noticeable though. I bet they factory adjust to the very end to allow a better cover-up of the clutch noise issue to start with by allowing a slight slip in the setting. Which would prove they know very well that it exists.
Like I said at the start, I LOVE THIS BIKE! But this noise is horrible & sends chills up anyone's spine who hears it. I would have sold at least 3 more of these to friends if that noise didn't scare them away from the model. I think I'll get a video of the noise & post it up.