With the Chia pet for a magnet, it’s time to get it apart.

Likely the OD unit is failing. Just a guess at thins point but likely one of the large needle bearing units or a planetary starting to fail.
The most common failure we saw in the Reman program was the bearing on the back of the main case - the OD thrust bearing.
And when it fails you lose the required travel to apply the OD clutch and disengage the Direct clutch.