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This is the red flashing light in the left upper corner of the radio panel (2007). About the last thing in my life I'm worried about is someone stealing my radio.
There is a thread on C5 about disabling it, getting a code or whatever so the radio works or something. I don't need any more complications in my life so I'd like to disable it if possible.
TBH, I've never even noticed it before. I don't need some gremlin-nanny screwing up my radio, but there is nothing in the manual disabling it, so maybe it isn't even possible on a C6.