You should take that in for service. I believe an issue like that is considered an "emergency service" and your dealership should be able to take that in right away. All I know is that it is probably the connection (electrical) that has failed.
Sorry I cannot be of more help.
I'll answer my own post. Pull front driver's whell/tire. Remove panel forward in wheel well. 13mm wrench, 1 per horn to remove. Replacement horns are $44.95 each at dealer. Total time working on car is 1.5 hours. Same for all E39 cars.
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