My transmission seems to be slipping...torque converter??

There is supposed to be play on that kickdown. If there is no play, then the carb won't be allowed to open up all the way. That's why you set the kd to all the way back at the same time the carb is all the way open. That metal might be from running the trans low on fluid; burning bushings and thrust washers. Never run the motor more than a minute if the trans isn't FULL. TransGo instructions dictate that the manual valve must be correctly adjusted within .030. Idk what "each button bottoms" means. Better follow shop manual instructions to adjust that precisely. If the arm that engages the manual valve is bent, then the detent won't match the placement of the manual valve within the valve body.
I'm having trouble finding those instructions. Do you happen to have a link?