Transmission only goes in 1,2 R, N, and P. In drive it goes 1,2 then nothing.
How many miles are on the vehicle and trans if rebuilt in the past??
Do you have a check engine light on and if so what are the codes??
Does it just stay in 2nd gear and not shift to 3rd?
Or whenever it should be shifting to 3rd it just goes to a false neutral (like you put the shifter to N)???
Have you tried to manually shifting the trans from 1st through 4th to see if it helps??
Your 4L60E trans does have some known issues, one is the burnt 3-4 clutch plates…
You also have 2 shift solenoids (A&B), if solenoid B is stuck in the ON position, then it can not shift into 3rd or 4th gear… Or if the TCM is not commanding solenoid B to OFF or damaged wiring then it can not shift into 3rd or 4th gears… Shift solenoid A is working or it would not 1-2 shift…
You need a scanner capable of at least seeing TCM Live Data and or commanding the shift solenoids…
So, if it is slipping (false neutral) when it should be in 3rd gear, probably looking at a rebuild…
If it just want shift into 3rd gear (stuck in 2nd gear instead of up shifting) then you might get away with replacing solenoid B (but replace both A&B) and the filter and hope for the best…