727 3rd gear feels more like a down shift

No the hydraulic circuit on the 2-3 doesn't work like that.
My guess is the KD servo is nor backing up. Could be mechanical, could be hydraulic.

Ok that's good to know just the same. What I'll do in the days ahead is change out that cable and run it through the gears to see how it shifts. If there's no change I'll put my transmission hat on once my garage and I are thru bodyshop mode. Appreciate your input AJ.