Issue fixed.
The vacuum line going to the modulator was squeezed.
This happened as the mechanics installed a new CPS. I must have had the line under the CPS. And even I told him to check this area, he never listened and wanted an overhaul of the transmission.
Today, I wen to another shop. We lifted the car, and the mechanics found right away the squeezed line. Replaced it, and transmission is shifting so smooth that I first thought its not shifting at all