OK, that's encouraging.
In "3" it should shift 1-2-3 and then lockup the TCC when conditions are met. TCC lockup isn't as noticeable in 3rd because the converter tends to slip less (higher converter RPM combined with less applied torque results in less converter slippage).
You might consider leaving that TCC kit on the shelf for a while, or longer, if the lockup symptom disappears when you replace the TPS. I'm thinking "if it ain't broke..."
I know what you mean, that's why I ditched the Flowmasters and installed the Dynomax UltraFlows