It should not damage the transmission if pulled slowly through the car wash in any selection other than park.

The only possible link could be that the Bowden cable is somehow pulled out and jammed (or the linkage), and the car will not shift out of first until you reach the full-throttle shift point. Have you driven it to the point where it would shift if it were floored? Have you tried unplugging the downshift button (under the gas pedal)?

__________________

Gone to the dark side

- Jeff