More than likely someone banged the trans into park while it was still rolling, and the lugs on the rear ring gear in the trans sheared off or rounded the "hook" on the parking pawl (since the parking pawl is the softer of the 2 metals). If you inspect it and it looks like it is not aligning with the ring gear lugs, more than likely a thrust washer or 3 are worn out causing the ring gear to ride too far forward or back.
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After inspecting the pawl (which looks slightly different from the one in the image above) and comparing to one I found on eBay, it would appear that it is in OK condition. I cannot verify if it is actually worn or not, but it looked OK to me.
By forcing the pawl to the rear, I can get it to engage the ring gear, telling me that it and the gear are likely not too badly worn. With a flashlight I could see the gear teeth looked ok as well.
Something else to note. When I pulled the pan, I found the magnet looked like this:
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Obviously something has worn quite badly in this transmission. Could this be the result of trashed thrust washers? Would there be any other indication of thrust washers being bad?