strut housing may be bent, your strut insert looks like its leaking, hard to tell from the partial picture. Looking at the age of things ill guess that the thrust arm bushings are toast also. So, without replacing everything under there have your mechanic inspect the front end again to see if you need any other hard parts and add that to new struts and thrust arms, get the arms with the 750 bushings already pressed in, available at BMA.
95 E34 530I V2.37
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