91 240 Auto Trans Fluid Mystery....

[e777]

Ok, so I just finished working on this AW70 tranny in my wife's 240 wagon.
I did the trans filter and pan gasket, as well as the tail shaft housing gasket, seal, and tail shaft bushing.
Prior to doing the above, I drained just over 3 quarts of fluid from the transmission pan.

Now, here's the mystery: Before starting the car, I added the exact amount of fluid that I had drained from the transmission.
Then, after letting the car warm up a solid 10 minutes and moving the shifter through all the gears a couple of times, I then checked the dipstick, which showed no fluid - dry dipstick! Checked for leaks and all is OK.

I moved the shifter again a couple of times with car running, still dry dipstick.

So, I kept adding fluid while repeatedly checking the dipstick, and, even after adding two and a half additional quarts, only the very tip of the dipstick is now moist.
.
With the engine off, different story. The dipstick shows a level 1/4 inch below the maximum (190 deg. hash mark)

So, before I continue to add more fluid, I though I would ask. What in the heck is going on here?!?

Thanks.

[volvolugnut]

Bentley Service Manual says the AW70 trans has total capacity of 7.8 US quarts and 2.6 US quarts in converter only. When pan is removed, the manual says 2.8 US quarts are needed. If you did not drive the car after filling with oil, the ATF will not be warm. ATF expands a lot when heated by driving. The manual says check ATF level after driving at least 30 minutes. Check in park, engine idling on level. Too little ATF or too much can cause oil foaming and false reading.
If you replaced with all new ATF, the level may be hard to see on the stick.
volvolugnut

[e777]

OK. Got it. Thanks for the information!