It could be a crack, or it could be crap in the seal lip, or it could be that the spring fell out of the back of the seal.
In ANY of those scenarios I don't accept that this is why it doesn't like shifting into third. (Especially if it was being driven for testing the shifts)
A leak capable of loosing enough fluid to not shift would empty that trans fast.
Of course I could be wrong.
I hate to be a downer, but it should have a new bushing and seal put in the pump it when the new converter goes in.
If the converter snout is cracked then it probably wasn't running straight in the bushing.