Compression sounds good, I'd trust the head & HG. Did you try out a cooling system pressure check? HF sells a
cheap ~$90 pressure tester with a BMW fitting, less with coupon or on sale. Really helped me out with overheating, ended up being a heater core AND a pinhole leak in the control valve.
You didn't use the URO part for the plastic coolant manifold, did you? Mine cracked just like yours did. I replaced it with a Uro part that didn't fit, then replaced it again with the OEM BMW Part instead.
You're using the correct alu thermostat housing with a paper gasket, proper o-ring, and you checked the bleed passage in the casting, right? Stock temp thermostat? I also use 1/2 bottle or WaterWetter and dilute my coolant down to 33:66 with distilled water, tremendously helps with bleeding and hasn't frozen up on me yet.