The buddy bug of the fuse…
The buddy bug of the fuse and relay removal which the TCM out of the picture will cause transmission damage. The amount of steel and clutch material in the pan really isn't that bad, I have seen worse but it was all coming from one clutch pack which is bad. An automatic transmission isn't automatic anymore, there are no vacuum modulators or governor's in them anymore. Automatics today are computer controlled manuals, there are solenoids in the valve body that are controlled by a computer and do the shifting for you. Basically all you have control over is forward and reverse the computer does the rest. Because the TCM could not put it in first gear it started and stayed in second, causing the vehicle to lug in too high a gear and slipping of the clutch pack trying to make it go. The transmission may be working but probably not for long, it is damaged.