the main problem with this transmission is the govenor sileniod mount plate doesnt have a big enough hole to suck transwmission fluid through. i suggest taking the plate out and drilling the whole big enough to allow the fluid proper clearance. another thing is they changed the fluid #2 is no longer available. there is a 50/50n fluid that is half synthetic and half regular. It works great. When you change the filter and fluid if you do these two things it will work perfect
We've probably replaced 20 governor solenoids/transducer kits, using stock parts, H/D Borg Warner parts, and Allison upgrade kits and never had an issue from the size of the feed hole or fluid flow.
No idea what the "#2" fluid is you refer to, other than the early Dextron 2 dinosaur *** from the 60/70/80's. The OEM fluid for that year should have been ATF+3, which was considered a "50/50 synthetic blend", and an improvement over the Dextron. Due to the overheating issues - partly from the intermediate shaft lube flow issue, and NOTHING to do with the governor circuit flow - the ATF+3 was phased out and replaced with ATF+4, which is considered a full synthetic with a higher temp tolerance.
So with that said - how is your "work perfect" fix of installing a larger feed hole and doing a fluid change going to repair the damage already done? That isn't normal clutch debris in the pics - the metal shards show that there are hard parts being damaged and the trans is likely to fully fail soon. A fluid/filter change (and governor parts replacement) is more of a band-aid from the "limp in to trade in" fix page than an actual solution to FIX something.