It will shift manually from 1st to 2nd but then if you manually shift to drive it will shift back into 1st. If you start in the drive position it will only stay in 1st but if then you manually shift down to 2nd it will shift up from 1st to 2nd. I have an idea but what would you say the likely cause could be? The transmission seems to run smooth, no unusual noises are heard, and fluid appears clean with no burnt smell.
Have you tried taking the car in for maintenance? Usually on most (older) auto transmissions there is a hose coming off of the exhaust manifold or carburetor area that provides the pressure for the transmission fluid. If that hose doesn't have a good seal, your shifting may be difficult and the transmission may not stay in the gear you want it to.
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