Rebuild transmission troubles

The fluid getting on the stick from the inside of the fill tube can trick ya.
I think 11 quarts is more like it, so you may want to keep putting fluid in it till it is obviously coming up the stick a bit.

Just a note; Any fluid in the converter is usually fine as the pump will fill it in about 3-5 seconds.
The important part is that a new converter has a little lubricant in it on startup.