Does anybody know if it is possible to remove the transmission governor with the tranny in the car on a W124 (94 e320)?

I'm not trying to go faster. Having shift flare issue from 3-4 and sometimes this can be caused by a malfunctioning governor

Yes. This is covered in a couple of old posts but here is what I did.

1.Remove fan shroud.

2.Support transmission with jack and block of wood under pan

3.Remove transmission mount

4.Disconnect exhaust mount

5.Mark for reassembly, and remove flex disk.

6.Once done, release jack and transmission will drop a few inches

7.You may need to, use a piece of wood to push the transmission over a bit to clear the governor. I actually used a piece of iron rod to lever it down a couple more inches. Be careful to watch that the valve cover doesn’t hit the firewall while doing this.

8.Remove clip ring holding the governor cover and remove

9.There is a clip ring holding the governor inside behind the weights. It’s easiest to compress it with a long screwdriver the release the unit. You will see an indent in the body where you can push the two ends together.

10.Reverse for reassembly.

Not hard, but can be frustrating, especially getting the clip ring to release the unit. Good luck.