A lot to digest here. The e28 is a sedan and had the M20, B32, B34, and the multivalve motors. I’d never had a B35.
A 635csi is an e24. The 635 only had the B35 in 1989. Check to see if it is actually a B35.
B34 Head:
A good upgrade. Less prone to cracking than very early B28/B30 heads. The 264 cam sucks though so if you swap heads keep your old 272 cam.
B35 Head. It’s a great head and flows better. Bigger ports and bigger valves. The cam is better also, I want to say it is a 272 also but obviously that is only one spec and it’s tuned for factory fuel injection.
If you drop a B35 head onto a B34 you lose compression. You can’t really do a B35 head without also getting new pistons, which is why
@HB Chris said it wasn’t a cheap/good upgrade. If you need custom pistons anyway, it’s a good route to go IMO.
Another thing to note as you swap heads, you will need the dual row timing chain and the old timing cover. Said timing cover should match the deck height of the head. That could mean finding a timing cover with more material left on it, or decking it at the same time as your head.
Disclaimer: I’m not a motor expert and Ive only taken m30’s apart, not back together.