Dealer put 0w/30 FE in 2005 E46 - is that OK?

Agree with above ^^

Engine doesn't have any leaks. I am pretty sure the yellow light flashed due to the FE 0/30 being "consumed" a bit.
10/60 is meant for the M3 engines, NOT the regular 330 series M54, even with the engie being a BIT different with the Performance Package.

The "thickest" I will use (and have used) is 5w/40 for this engine in summer and 0w/30 (NON FE) or 0w/40 during winter.
 
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