Fluid is full, no leaks. 3-2 downshift is as normal as I have the information for... it'll manually downshift from 3-2 and if I need to go from 3-2 in driving it does it just fine. I'm not going to say it's the fastest action, but it's an ancient transmission design... not a Porsche.
I have replaced all the solenoids and all the other doo-dads you can swap from under the car without removing the valve body and what not in a hail mary attempt. Also added a Corvette servo. It did improve after that (1-2 shift is smooth as butter now, for example). During that process, I did a (12QT) bypass fluid flush with Valvoline Multi-Vehicle ATF (Dextron IV compatible). The old fluid wasn't in bad shape (no smells, normal discoloration, no sparklies) and the pan didn't have much to speak of in it. I have no codes. The MAF was cleaned and scan data indicates it's working as it should, based on the information I have. Cleaning the MAF made the truck run a little better and improved fuel economy (by the numbers---I use an app to track). I also - since it was cheap and easy - replaced the TPS with a new AC Delco part... nothing changed from that but I didn't think it would. My thinking is I should find a way to reset the learned trans parameters before I spend big money on a rebuild. Maybe the computer needs to start over from a baseline... going to have to do that if I put in a rebuild anyway. Can only do with a GM tool.
It is the original trans at 204K. Truck was originally owned by a GM mechanic, then sold to guy who drove it to work and spent time literally toothbrush washing the engine bay kind of care. I don't expect the 4L60E to be in brand new shape right now but I am ONLY having this 2-3 shift weirdness after the work I've done to it. Again, it's totally driveable so I'm somewhat trying to avoid spending $1600 on a rebuild and doing all that swap work. I do need a new rear main which is why I'm motivated to consider it.