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The BMW 5 Series uses gas-filled bonnet struts rather than a solid prop rod, so yes, this is a genuine part you need to replace. There are typically two struts, one on each side (NS and OS), and they are what hold the bonnet open when you are working under it. If one has failed the bonnet will drop or feel weak, and it is worth replacing both sides at the same time as the other is likely to follow.
The E60 is the fifth-generation 5 Series running from 2003 to 2010, while the F10 is the sixth generation running from 2010 to 2017, and these are entirely different platforms with different bodywork, so the struts are not interchangeable. You will need to source a strut specifically matched to your generation. Always confirm the exact part against your registration with the breaker before buying.
The F10 received a facelift in 2013, so a 2014 car is a facelift model. The bonnet itself may or may not have changed at that facelift boundary, which affects whether a pre-facelift strut will fit correctly, so you should confirm against your registration with the breaker rather than assume. Give the breaker your full reg so they can verify the strut mounting points and geometry match your specific car.
Trim level does not affect the bonnet strut, so a strut from an SE, M Sport, Luxury, or any other trim within the same generation will be the same part. The xDrive all-wheel-drive badge also makes no difference to the bonnet struts as the front-end structure is shared. Focus your search on getting the correct generation rather than worrying about trim or drivetrain.
Engine choice does not affect the bonnet struts — the front bodywork structure and strut mounting points are shared across petrol, diesel, and hybrid variants within the same generation. Whether your car is a 520d, 530i, or 540i, for example, the strut specification is the same. Just make sure you are matching to the correct generation and facelift period.
Used struts from a reputable breaker are a popular and cost-effective choice, but do check that the strut still holds its gas pressure and is not collapsed or corroded, as failed struts are sometimes the reason the donor car was stripped. Ask the breaker about the mileage and condition of the donor vehicle. If the price difference between used and new is small, new may be worth considering given how safety-critical it is to have the bonnet held securely open.