1994 BMW 525i transmission shifts

Iggy, whoever told you that the fluid in that transmission is lifetime is full of s**t. It's regular DEXRON fluid.
There is a possibility that changing the fluid and the filter might help, but it really sounds like something has failed inside the shifting body. Call around to some transmission shops and see if you can get a "feel" for someone who really knows those trannys.
Dropping the oil pans and cleaning/inspecting the shift body inside and out and reinstalling it correctly is not difficult but does require a lift and some mechanical skill.