Well I think I figured it out based on step 11 of this Z3 clutch replacement guide
https://webspace.ringling.edu/~dplassma/cj/cj.html I was using the E36 clutch replacement guide on PelicanParts which got me confused.
So the starter should be unbolted at this point but I still can't get the bell housing to separate more than about an inch though.
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