Thank you kindly for checking those suggestions, for your thoughtful reply, and for sending feedback to Apple.
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Re: "I will certainly look into possible firmware updates"
From their webpage: https://www.mercedes-benz.co.uk/passengercars/technology/over-the-air-updates.html
seems Mercedes do "over-the-air" software updates, yet permissions for them must be given regularly for them to download.
Eg: says:
"You can manage your vehicle’s Over-the-Air (OTA) settings in your MBUX infotainment system. You can enable or deactivate automatic updates and downloads".
NB: Couldn't find info. specific to your particular vehicle model there though.
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Re: "CarPlay worked perfectly before I upgraded to the iPhone 17 Pro Max"
FWIW: There may be quite a difference in the iOS software on the iPhone 17 Pro Max, as it is compatible with Siri AI. It's possible a firmware update may be needed for CarPlay to run smoothly with that newer technology.
ie: iOS 27 on iPhone models before 15 Pro models, iPhone 16 models or later, and iPhone Air, is not compatible with Siri AI, so it will not be available on the earlier models.