Sounds like the transbrake is coming on in low gear all by itself. Its possible there is a valve stuck due to the debris you said was in the oil. Best to have it looked at.
Odd problem in gear but the trans may have been built without the servo seal installed to use the full area of the servo. The broken servo may have been part of the problem if it was jammed in the case and was applying the band.
Hutch
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