I don’t have a manual handy, so I’m going by memory with this.
Some transmissions use a 3rd and 4th gear pressure switch. If I remember correctly, the 700 transmission is hydraulically capable of locking the converter in every gear except first. That means the computer depends on the correct sensor signals to command converter lockup function.
Where am I going with this you ask??? If your transmission has a 3rd and 4th gear switch, the computer may be seeing a signal for 3rd gear (allowing lockup) but no 4th gear signal. Since it has no 4th gear signal, the PCM may be commanding to converter to unlock.
Put a test light in pin F of the CCC connector. That’s the test pin for the converter clutch. The test light should be on with the key in the run position. Push the brake, the light should go out. Once the PCM provides the ground to engage the clutch, the light should go off. If it comes back on once the trans shifts into 4th gear, you know it’s the PCM commanding the clutch to release.
https://atracom.blob.core.windows.net/gears/2015/2015-03/2015_3_32.pdf
here is a diagram I found for a mid 80s F body. You can see power goes to the solenoid (and the TCC brake switch)on the pink wire, come out on the tan/black, and goes to pin F of the data connector and the PCM. The diagram doesn’t show a 3rd gear switch, but I’m almost positive some 700 used them. Depending on what the transmission came out of, you may just need to move a couple pins around on the connector.