Understood, all good feedback and valid point.
My thinking was that with the fluid, having already gone through the main trans filter, as long as that is doing its job, this in-line filter really won't be collecting much (in theory) or enough to cause a restriction. It's more of a secondary providing the trans with the most cooled and clean fluid available. If it does show that it's more of a risk than it's worth I have no issues removing and connecting the hoses directly.

the factory provided “filter” is a quite coarse screen, your filter will catch far more. the way i see it - the trans last 300k+ miles in stock trim, why bother? nonetheless, good luck, car problems are frustrating at best.

Yup,
shifty dance is back and was all over the place today. Any slight bump or vertical movement caused a change and was quite back and forth.
Should I even try replacing the NSS or as this point can we rule that out? Solenoid next?

Is it shifting going down the highway or just the torque converter locking and unlocking? Mine has been acting up as well. Some times it just stays stuck in 3rd. Other times just the torque converter locking and unlocking. I replaced the TPS, solenoids, trans fluid, ect. I am getting ready to pull a TCU from the junk yard and see if it helps any.
There is a way to check on the 97 and ups if the solenoids are good or not with an ohm meter. Several rights ups here from a user I think ccken that you maybe able to test them first.

Here is one for test the tcu or tcm
https://www.cherokeeforum.com/f2/tra...2/#post3099514

So, I am going throw out an idea and it is around the original statement "changes when hitting bumps or any kind of vertical movement".
I was getting the same problem if braked hard. I was dropping out of gear. Replaced NSS. Still problems. Checked everything. Still problems. Lots of movement would get it back into gear again and then I would be off, until I hit a bump or braked hard.
Then......wait for it.....I replaced the very worn out motor mounts [with Brown Dog]. Bingo, never had the problem again. I think that things were getting out of alignment as there were too much play in the mounts.
Have a look at your motor mounts and see if they need replacing.
Maybe, just maybe.......

Doubt it's directly from the TC as there's no issues with any gears until i hit 50+ and bumps between 4/OD...1-4 goes smoothly.
By that link and my codes that I ran, SOL A is CAV 12 on the TCM. I am terrible when it comes to electrical, so it should be reading 11-15ohms? If not, in either direction, what would the next step be?

Motor mounts, eh? I'll give those a look over. Can I ask as to what pointed you to those or how you came to decide on replacing them in your diagnosis?

The motor mount option was found after listening to the Car Guys on NPR. Their idea, not mine; but it worked.
Whether it is the solution or not take a look at them and if they are original on your 20 year old Jeep then replace them. A very easy job.

Wasted money, it's an electrical issue.

If electrical, where would my starting point be?

Did you ever test the brake switch or just visually inspect? Not sure off hand of the procedure but I would at least test it.

I will add that to the list.
Need to acquire a multimeter in the near future

This. I thought we covered that already.

If only over 50 and in OD, hitting bumps, it's gotta be the brake light switch at the top of the pedal. Out of adjustment most likely.

Any chance if it is the brake switch/sensor, that it would also be throwing the ABS light? Just hoping for 2 bird 1 stone type deal, otherwise I think the light may be from my parking brake line off the passenger side rear...looks a little frayed.

Geez Louise!!! Take a look at it.

Park brake lines have nothing to do with it.

You can look at all the parts, but until you get a meter out and start checking it will be hard to find.