That's a likely suspect casue, not a diagnosis...You really need to pull the TEHCM and valve body assemblies down and bench test each using a DVOM and Test Block (TEHCM) and Sonnax vac test machine and 6L test plates (Valve body). But generally speaking, 2-3 flaring is the beginnings of 3-5-R clutch failure...If you start to notice flairing from 4-5 or delayed engagements / slipping into Reverse, you'll have your answer.If that is the case would there be a reason it only does this in 3rd gear and not 5th and reverse?
Keep driving it if you want. Worst case you'll lose reverse, third and fifth and will have to either limp it home or have it towed there or to a shop.