727 shifts into 2nd and reverse at same time

So you think the case has damage? I was thinking someone may have pulled the hit reverse at high speed maneuver. Usually happens when fighting with significant other while at speed.

Thanks for the input. The last thing I ever expected to have problems with a trans is it trying to go into two gears at once.

The sprag probably has spun in the case. It may or may not be repairable with a bolt in replacement. The trans shop should have used one if they suspected an issue with the case, but it may not have looked bad.
The trans will need to come out again, and the sprag checked. If the case still isn't split, a bolt in unit may work but you won't know until its torn apart again.