Intermittent Automatic Gear Engagement

2003 E85 Z4 - 3.0 Automatic. 108k.

I'm having a very intermittent (but apparently increasingly frequent) issue whereby when I start the car, the gearbox 'cog' amber light stays on, the gear display disappears and then selecting 'R' or 'D' feels notably different to normal. If I try to drive in 'D' when this happens, it FEELS like the clutch is slipping, but the car does move. Again, the gear display that would normally say 'D' is blank.

I seem to have been able to resolve this so far by simply restarting the car. The gearbox cog then doesn't illuminate and I can select gears normally.
Any suggestions on where to start with this? There are no additional fault codes present.
 
position switch.
I thought this may have been the case, but I've seen arguments for it being a battery or relay, too. The car starts and drives fine when the cog is not illuminated so leads me to think it is the sensor?

I BELIEVE the part number I need is 24107507818, which is pretty expensive for a sensor so don't want to waste time or money. I also can't find much information on how easy this part is to fit. Perhaps I'm searching the wrong terms. Any ideas?
 
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