727 Shudder in Reverse, then rattle on 1-2 shift

I assume automatic shift valve body with a shift kit?
Is this when you manually shift 1-2 or when it is in Drive?
Correct. Automatic shift valve body with a shift kit.

I have not tried manually shifting it from 1-2. The noise, so far, only appears when in Drive and it shifts automatically from 1 to 2.