It will be helpful for the OP to first identify the transmission that is installed in his car. The one illustrated in the posts above (aluminum case, no side cover, shift arms point down) was first installed in model year 1981. Although it is entirely possible that along with the 616 engine, a trans from a W123 was installed, the original trans has a cast iron case with a separate side cover, and shift arms that point upwards.

Honestly I am pretty sure the bottom of the trans was cast iron.. I was wiping it clean yesterday as it has a minor seepage / drop coming from the two shift linkage bushings. I believe they point upwards.

The bushings/ seals were loose and had some play between the transmission and the shifter arms. Can I simply loosen the bolts on the shifter arms and slide them over?

Also does anyone have a diagram for the correct manual trans shift bracket and mount? this car definitely does not have the correct one installed as it only bolts on one side and hangs. When I bought the car there was no mount installed at all

It drove just fine and I didn't realize it until I got under it a few days later!

Lastly, I noticed that going from 3rd to 2nd is a bit difficult. Not sure if this is normal or if I should maybe consider changing the fluid. I know they take ATF and from what I saw from the wetness/minor leak it is def not ATF in there.