I have a similar issue with my 2018 XC60. Just passed the 50,000 mile mark so it is out of warranty. I first received the "Headlamp System Malfunction Service Required" error. Volvo dealer's certified mechanic replaced the Right Front Headlamp Control (H.C.M.R.) and reloaded SW to correct. They charged $476 USD - should have been $950 for parts and labor but Volvo and dealer cuts parts and labor by 50%.

Within 24 hours, the error message was back. Volvo dealer's certified mechanic then diagnosed another problem and suggested a new Headlamp Assembly - $2,500 part plus another $1,000+ in labor. Their ears are still ringing. They went pack to Volvo and together came back with a total of $748.

Before I could bring it back for the service two more errors have shown: "High Beam Malfunction" and "Low Beam Malfunction". The errors now switch between the three but most if the time it indicates "Low Beam Malfunction."

I bring the car in tomorrow. Based on what I have read on this forum I don't think that their diagnosis is correct and I'll ask them to check sensors on the rear axel as this may be related to the bending headlight functions. It was raining when I received the first error and again when the Low Bean Error first appeared.

 

I own a 2014 xc60, it has traveled just over 80,000km, and I had a similar warning message on my dash. Seemed to come on slight bumps and just about anytime the headlights seemed to be automatically activated. I had noticed when trailing other vehicles that one of the headlamps seemed to be out by way of looking at the reflection of the beam off the car in front. Initially this was occuring on the drivers side. I decided to go through and troubleshoot it a little more tried searching for fuses and relays under the dash to no avail, so I decided to investigate the headlights themselves. I took the two retainer pins holding the driver's side head-lamp out. The whole light assembly can be removed by wriggling it around / about within the guard. once removed I unclipped the one controller/power cable keeping the light still attached to the car. once removed there are 4 or 5 torx screws on the back that secure a small black panel. These protect the headlight internals from the environment. After undoing all of these you can remove the small panel, you will see if doing this yourself the xenon light globe. I had seen them in a forum listed as a D1S, but in my case it is an Osram D3S (check you model type before considering a purchase of anything to replaced your lamps). I unclipped the power cable from the top and removed it from the assembly by twisting the black paddle retainer near the base of the globe which holds it in the light assembly securely.

D3S bulb


The light I removed had a very small cloudy patch, it did not look like there was anything wrong, but I decided to relocate this globe to the passenger side and vice versa. The issue was now noticeable on the passenger side now. I ordered a single globe from eBay listed as "Genuine OSRAM 66340HBI Xenarc 35W D3S PK32D-5 4600K HID Xenon Light Bulb A05 A0." which set me back AU $61.27. When it arrived I replaced the bulb with the cloudiness, and voila, there has not been a "Dipped Beam Malfunction" message since.
Hopefully this might help someone else out.

Dash error message.

 

I was delighted to find your post. I have the same model XC60 and suddenly developed the Dipped Beam Malfunction message. I removed the Xenon bulb this morning and found exactly what you describe on the side of the glass tube - almost looks like a small fusing. I am going to try and get hold of a replacement tomorrow.
thanks so much
David Asherson
Durban
South Africa
davidash@mweb.co.za.

 

It does indeed sound like a bulb issue. I had the same message and sure enough, a headlight bulb was out.