E36 Trunk Latch Reinforcement Bracket – Fits E36 Coupe, Sedan, and M3 (318, 325, 328) – CNC Cut 304 Stainless Steel with Hand-Polished Mirror Finish – Prevents Latch Tear & Strengthens Trunk Mount

Adjust that striker there and move it up or down as necessary, you can check how far off the latch is by putting your phone in the trunk recording facing the latch. The only other thing I’d recommend if you still can’t get it to latch after adjusting the striker and getting a new latch is a reinforcement plate like this one: https://a.co/d/0hEBHIB6