Missing or loose bolts. If you are feeling brave pull the bolts and push the torque convertor back into the tranny and start the engine back up. That will tell you if the noise is tranny or engine related.
There is literally nothing special in a monster that isn't in any other reputable rebuild including one from a local trans shop. They win at marketing and that's it, in fact some of the stuff in their monster in a box kit is outdated and there are better alternatives out there then what they...
The efficiency of the oil pressure didn't improve, the gauge is now reading correct, that's all. You have the same pressure to the mains and the rods that you had before.
Rear end rebuilds cost money because you pay for what you get. If you want cheap labor the rear end is going to suffer. The labor cost should be the same whether you swap the ratio or not, the work is the same and honestly at this point since you don't know for sure what is whining the gear...
Lower arm for sure, looks like probably the upper arm and the inner rod end. Once you get the thing apart you'll know more for sure. I can't imagine that spindle bent instead of snapping, also can't see the sway bar bending either but you never know.
You can look at the MAP sensor data real time like the others and see if it's jumping around. Did you hook up an actual vacuum gauge and see what it's doing? Since this is a TBI induction system using the old methods of troubleshooting with a carb and vacuum gauge work nicely.
It's shallow, the deep pan option didn't start until 98ish. Of course someone before you could have swapped a deep pan... Or even an after market one...
Do yourself a favor and take it to a shop, don't trust a bunch of goons on the internet to troubleshoot your suspension. If they get it wrong you die.
With that said, it appears the bolts that hold that to the frame may be loose.
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