I talked to Jeff and after he asked a few people, we hope it is a combination of ATF and gear lube. It looks non-friendly to my untrained eyes. Jeff recommended brake cleaner as a solvent and clean the stuff out of the case. I used 1 3/4 cans this evening. It looks much better. I drained it all out and am letting it sit overnight to dry out. I will check it again in the morning and clean again if necessary.
The second moment of the night was when I discovered a couple of chips on two gears. One is the on the reverse idle gear and the other one is on the input gear at the front of the transmission rail.
I assume (and hope) that an occasional nick is common and it won't effect the operation of the transmission. I am a little more worried about the liquid that came out of the transmission than anything else right now.
Hopefully tomorrow will be better
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