Broken Transmission
This car was mistreated in 1st gear causing the sprag to roll. It appears the case is also broken, and if not, it will likely need another case anyway as once that inner sprag race is removed you'll probably find it dug into the back of the case as well. Not to mention what you have going on up front with the crank bolt witness marks on the converter. Probably some ballooning as was mentioned, and probably wiped the thrust bearing in the motor, as was mentioned. This is going to be a costly one as that transmission is a complete goner, (lots of hard part damage I'm also betting) and you'll need to find a useable core--not to mention any engine damage.