1987 Buick Grand National 200R4 issues

No reverse, stuck in forward gear anytime its out of park. Wants to move in neutral, vehicle is hard to push in neutral with the engine off.
Mechanical linkage in and out of transmission is OK. Manual valve moves freely and correctly. Fluid has burnt smell but red in appearance.

I have pan down and found metal shavings more so than normal wear and tear.
A lot flakes in pan that i can pick up with magnet. NOT friction material.
Attaching pictures.

I'm not an expert in conventional automatics and certainly not in older ones. I know enough to be dangerous however.
Mostly familiar with Nissan 5 speed auto and 7 speed auto. CVT's as well....I know a lot about those.

My best guess is the forward clutch is roasted and fused together. Time for a rebuilt unit or a rebuild of this one.

Thoughts?

I would have to agree with your assessment. If you would like I would be more than willing to take that car of your hands anytime haha. They're very fun to drive. I haven't had one of those in my bay in years.