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Morning Chad Welcome to the Forum Always difficult to diagnose a knock or clunk without experiencing it.Is the knock are one off clunk or a rotating knock knock knock? First did the specialist explain why they thought it was the diff? If the diff is worn then I would think it should be possible to check your self how much movement at the Input shaft/prop are all the bolts tight and the coupling in good condition, is the centre bearing OK. If they are then how much movement is in the drive shafts either side. Is the diff oil level correct? As far as the Diff goes I guess that price is a BMW OEM part plus fitting. As you have a handy brother inlaw in your tool kit 😁 Maybe talk to some of the BMW Specialist Dismantlers (Google) check www.realoem.com put the last 7 digits of your Vin into the search box then check the Diff in the Rear axel section double click the part number and you should get a list of othe models it was used in. Good Luck Dave