My temp control knob was stiff and felt like it was binding. I decided to remove the E21 heater control panel and see what was going on. I wasn't prepared for how invasive removing the panel would be.
the steering wheel has to come off for access and to remove the trim panel under the instrument cluster. horn wiring with MOMO steering wheel. you should also lower the steering column by removing the two 13mm bolts on the underside (they hold the column to the dash).
right side cables - fresh air vent, dashboard vents. note the metal retaining clips over the blue sheathing. on the temp knob the clip was hung up on the white cable only.
don't do this!!! there are two screws behind the control knobs that I didn't notice. they broke when I took the panel off... pull the knobs out and remove the screws. and there are three more along the top that are easily accessed.