This answer is applicable for many BMWs in addition to the one listed below.
Q
car year: 2004
car model: 745i
I get this message following a TRANSMISSION FAILSAFE. The on screen message than tells me to stop the car turn off the ignition and restart, to clear the fault. This works. I have replaced my battery but still get dynamic failure. Can you advise me what is causing this fault. (The car drives fine once I have restarted). This fault usually occurs every morning but not for the rest of the day. On occasions I also get PARKING BRAKE FAILURE, ALTERNATOR FAULT. I am not sure what is causing these faults (Maybe the OPTICAL STEERING ANGLE SENSOR or Alternator?).
A
First, you may have a weak alternator. On the later model BMWs (mostly around 2000-on) low system voltage will trigger various faults and functionality problems in the vehicle’s electrical system. This includes transmission faults. I would start by checking the alternator output voltage while at low load as well as at a high load. With the engine idling, you should see at least 13-volts with a voltmeter placed across the battery terminals. If you turn on all of the heavy load accessories (headlights on high, rear defroster, blower motor, heated seats, etc.), you should still see at least 13-volts. If you find the voltage is a bit lower (not lower than 12.5-volts, with all of these items turned on), rev the engine to about 1100 to 1200 RPM, this should bring the voltage to well over 13-volts. If your tests are suspect, the alternator is likely weak.
You can also take a look at this BLOG post on Dyrnamic Drive faults. Note that this post and the associated service bulletin do not specifically apply to your E65/66 chassis 7-series.

i get transmission failsafe indicator comes on but will not shift into gear. but when i disconnect the battery and wait awhile and hook up the battery the transmission light goes out and the car goes into gear.
What BMW model do you have?