46re acts like its in forward and reverse at same time

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Ok, here are some pics of the debris. Ignore what appears to be small rocks. Oil-dry got in the mix somehow. The bottom pic is all magnetic crap. Largest piece is about a 1/4" square. The magnet is about 1 1/4" dia. for size references.

I also got a better description of what happened from my son. Some of it will be a repeat.

He noticed a "jerk" pulling into his girlfriends driveway. He put truck in reverse and backed up about 10 feet and then pulled forward. Said it seemed fine.

Later that night, got in to come home and said when he shifted into reverse it made a loud bang or pop. Tried to back up and truck would jump a little when revved. Said he only tried a couple times. Shifted back into D and tried to pull forward with same result. Shifted to 2nd and was able to pull forward about 20 feet to get out of middle of driveway but took lots of throttle.

The truck will not roll with transmission in neutral. Acts just like its a manual with the clutch out and in gear. It will roll with the transfer case in neutral. I tried reverse again at home but would not move. I then shifted to D and was able to idle forward to the end of the driveway like normal. I then tried reverse again with same result as before. Back to D and then would only move with heavier throttle than normal.
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Also, the two "levers" in this picture both have about 1/4" free play up and down. Not sure if that tells anything good or bad. I believe the one on the left is the low/reverse band adjuster?

Hopefully some of my ramblings have made sense.