It did not. I did not replace the foam strip. Mine was in good shape. The first versions of the zf transmission did not have these. My understanding is the foam keeps particles out that circulate in the fluid. Not certain it’s a critical part.
I also did use the Mercron SP fluid which is compatible according to ZF. It is red in color but chemically consistent. I believe there are anti-shudder properties (like Lubegard instant shudder fix) which gives it its red color. If you look on several of the bmw forums and other conversations about fluid, Mercron SP checks out. It was $90 for 12 quarts...so there’s that and didn’t have to take out a second mortgage to buy fluid -Lifeguard 6. I also found this link for fluid which also seems to be a compatible fluid, but didn’t do much research on it.
https://rover.ebay.com/rover/0/0/0?mpre=https://www.ebay.com/ulk/itm/282910028278
Mercron SP is working great and all is shifting as it should. Very little concern with compatibility, but thought it worth a mention. I’ll probably swap the fluid more often (every 30k) due to affordability of Mercron.