Inspection of a 904 torqueflite

Aside from what I THINK .....is reverse drum wear.....and it didn’t go down into the un machined area. It stayed worn on its machined path

I see nothing wrong with this transmission.

The fluid is black and that metal comes from somewhere.
I just don’t know where. Of course I cannot see the torque converter.

I would not think.....looking at that reverse drum....that it would create chips like that. Maybe the snap ring being dug into?

I haven’t posted pictures of the clutch packs yet. They are good