Welcome to United Bimmer! If the button/catch is the problem I would start with that. You could replace te glovebox door, but it's common for them to sag over time. Theirs a few good DIYs in how to fix it though. Is their a junkyard near you? Sometimes E36's pop up and you can get parts for quite cheap. For the latch I would go with Pelican parts. Awesome company.