Ah, yes. The M Sport option package. Both my wife’s X3 and my 135i have the M Sport option. It’s not the same thing as being an “M” model in that it’s primarily a trim upgrade with firmer suspension. The true M models come with an uprated (and once upon a time, hand built) engine and a even more stiff suspension package.
BMW is really milking the M cash cow. My car has a bazillion M badges even though it is in no way the hardcore machine that the 1 Series M or the M2 are. And despite how cynical I am about the marketing exercise, I still paid extra for it.