This issue has persisted since Forza Motorsport 2. Despite an attempt to “amend” the issues in Motorsport 5, the model has only gotten worse if anything. The E36 M3 in Forza is overall very disproportionate, with every single part shape being wrong. On the contrary, its weaker sibling, the 323ti Sport only has wrong body size scaling, but the overall shape is correct.
The entire front of the E36 M3 in Forza has wrong shapes of… everything. It’s completely deformed. Headlights are too big, the front bumper is completely wrong, the whole front is too short and too small. There are even some parts from the USDM model, despite it clearly being an EUDM car
The side line does not drop enough from the rear end to the front window. The roof line is not round enough. The wheels are disproportionately big. All lights are too small. The door windows are curved on top for some reason.
The entire rear end is, once again, disproportionate. The lights are too small, the bumper is too small, everything else is too big.
Despite recieving changes for Motorsport 5, the E36 M3 in Forza is still in a dire need of a new model. You need to rescan it.