This might seem like an obvious question - but - was it working properly before you fiddled with the k1 spring in the valve body?
I've not seen information like this in the 722.3 ATSG manual but here's information for the 722.1 which
I think has the same relationships...
As you can see k1 clutch is required for 4th gear on a 722.1 => I'm
guessing it is the same for a 722.3