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A special thank you to Trent Cole of Lone Star Bavarian in TX for the great write up. Here are his words verbatim.

Hey Gang,

In the past we have all come to the conclusion that the later(2002-2003) E39
headlight adjusters that are contained in the assembly with lenses that
CAN'T be removed were not replaceable.  These assemblies have a lens epoxy
or bonding agent that is not breakable without damaging the assembly. I
have noted that the glue or bonding agent is usually gray or brown in color
and does not give, even if heated.

I recently found a way to replace these adjusters via cutting a strategically
cut hole for the high beam side (see picture below).  The low beam side can be replaced through
the low beam access hole.  I had to remove the adjuster receiving end(torx)
before removing the respective adjuster.  I utilized a couple of surgical clamps (see picture below)
and appropriate torx driver.  After you are finished you will need to cut
another piece of plastic that is oversized to epoxy back down to the headlight
to cover the hole you cut.  We are currently using Wurth's Replast Plastic Repair for
this type of epoxy job.  This stuff sets quickly and permanently.  See the
photos attached.  I didn't take as many photos as I should have because my
time was limited and I wasn't sure if this would work.  I am satisfied that
it will work for the future and plan to use this, with the clients
permission, to fix the assemblies in question.