SOLVED
Had the same issue as (OP) W8MCC.
My encoder motor gears where stripped. (cheap aftermarket encoder).
It was stripped because the needle bearing in the Tcase was bad. That bearing holds the splined shaft for the encoder motor. Bad bearing = play. Play = crooked engagement and stripped gears under load. Split T case apart, changed bearing. ( Can probably change the bearing without splitting the Tcase next time.) Got a used GM encoder, bolted back up. Works like new.