904 shifting problem.

This is called a shift flare, and if the fluid level is correct, and the bands are adjusted right,then the cause started with either faulty lipseals or a hung governor.
All your dicking around with the KD, which is actually adjusting the throttle pressure, is pointing to the governor being ok, and testifies to leaking lipseals.
A pressure test will reveal the problem.
But honestly, it's only a lil more work to take the trans down and look it thru.
This would cause the no first gear issue as well? Like I can’t get it into first.? Feels like it starts off in second? I do have reverse but it engages hard . And I’m not a transmission guy what so ever but always willing to try to fix something. I have another 904 it’s rebuilt but I have a 8 inch converter non lock up for my dart but the truck is more of a street driver but it’s tranny is a lock up I think if it’s original to truck need to look. Any ways what exactly am I looking for inspection wise ? I haven’t checked bands yet cause I still had reverse ? Once again sorry ignorant when it comes to transmissions