This issue has persisted since Forza Horizon 4, but in reality it dates back to… Forza Motorsport 2. The 2008 E92 M3 first appeared in Forza Motorsport 2 as part of paid DLC. It appeared in each subsequent title until Horizon 5 with zero modeling changes, and even recieved two Widebodies in its life.
The E92 M3 GTS first made its appearance in Horizon 1, where it was a paid DLC. It seemed to have a slightly different model, with different body proportions and shapes. For over 7 years FH1 was the only Forza game that featured this trim of the M3. Then in Horizon 4 the M3 GTS was brought back, but this time it was using the standard E92 M3 model, down to the interior. This M3 model is really inaccurate even for Motorsport 2 standards.
The entire front end of this car is deformed, the front bumper vents are too big, and so are the headlights, which makes the front disproportionate. Overall, the whole body is disproportionate, with the roofline being a bit too tall, and the whole car seeming slightly too short. It is not sleek in Forza.
The rear end has seen similar fate, with the lights being too big compared to the rest, while the factory wing is a bit too small. The rear wheelarches are also slightly too low, which can’t really be amended by upgrading the Suspension.
Other inaccuracies:
No factory roll cage painted in body colour (featured in Horizon 1!)
No RPM lights on the cluster (featured in Horizon 1!)
Front wheels as concave as rear wheels
Hilariously huge panel gaps
While the E92 M3 may still seem new, understandably so, the one in Forza is in a dire need of a rescan. Please give it the love it deserves, maybe even adding a lower version like the 335i. A full non-M kit, a full M-Sport kit and a full Hammann kit were available in Horizon 1, let’s not forget about that.