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Trans uses Dex3, but fluid probably not the problem.

 

There was an issue with the early models that have an inline filter between the trans and the cooler (in radiator) and the filter gets plugged and causes problems.

Check if it has the inline filter. Should be somewhere along the frame rail on the drivers side if it has it. If it doesn't have the filter you could try bypassing the cooler temporarily to rule out an obstruction there.

 

Otherwise, probably gonna be looking for a new trans.

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Sure sounds like low fluid level or low line pressure (internal leaks or tolerances too loose): either way, at idle you don't have enough pressure to hold the clutches engaged so it effectively goes to neutral. once you rev up the engine (and fluid pump) pressure rises and the clutches engage suddenly. Esp since you say it started all of a sudden, it makes me think a seal blew out inside the transmission. 

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