The jury is in this morning and the problem was not a problem. The verdict indicates the owner (me) missed some important clues that might have helped him avoid getting all worked up.
When I first bought the tractor four weeks ago, from the owners manual I learned where the sight glass was to check transmission fluid. It made no mention of how the attachments should be positioned, and my guess is when I looked at the sight glass, I had the tractor outside and probably did not have the bucket on the ground. I noted a line of fluid within the window and gave it no more thought. Skip ahead to yesterday morning with the tractor in the garage, bucket on the ground and no line of fluid, rather a full glass of what was now looking to me using a high intensity flashlight like it was milky (remember the flashlight part). My first thought was that the fluid level had increased beyond the acceptable range and it also looked contaminated. Alarm bells were ringing all over the place.
As the day wore on, some of your thoughts above forced me to think more about what might be going on here and I am grateful for that. From the file the previous owner left me, I noted he had had the dealer do a full 800 hour service in May of 2018, including a Super UDT2 and new filters fluid change, and now I'm thinking the dealer probably filled the system a bit to the high side, pushing the fluid level up out of the sight gauge with the loader completely down and 3 point up. Secondly, and most likely what really got me going, years outside sitting in the Arizona sun had lightly crazed the sightglass lens and while not a severe condition affecting fluid observation outside in the daylight, when I hit it with the flashlight inside the garage, the oil now looked milky and contaminated through the sightglass (see the picture in my first post above). Milky fluid made me think water or coolant in the fluid and with the level now appearing overfull plus a previous couple days of really heavy workload preceding this new feedback, well, I was off and running. Dollar bills were no doubt waving good bye!
At least if you a going to make a mistake, this is the kind you want to make. Zero $ to correct; true cost = embarrassment.
