727 3rd gear feels more like a down shift

Yes, full manual reverse valve body.

Was it made into a full manual reverse valve body with a kit? Or was it bought from someone (like cheetah) like that?

Like someone else mentioned. The kits to turn a stock VB in a full manual reverse still sometimes need the line pressure. If it was bought as a "new" VB from cheetah. Then you probably don't.