Transmission problems 94 vw passat vr6 auto

i have a 94 vw passat vr6 that wont shift. when you start off in drive it takes a second for it to start to move. if you shift it manually from first on up it shifts okay but sometimes it slips in between 2nd and 3rd. the only time the car will shift is after driving it a few miles at about 65-70 it will shift itself into second gear and not come out you have to shut the car off and wait a few minutes to “reset” itself. after driving it on the highway it kicked itself into second gear, i pulled over and the fan was on and it looked as if there was some fluid on top of the transmission but cant recall if it had been there earlier. i checked the ATF and there was no shortage of fluid. could the fan be on due to the transmission over heating? what could be the cause of it not shifting?

It sounds like the transmission is going into “limp home” mode. There may be some information about this in the owner’s manual, but you need to take this to a VW transmission specialist to find out what’s going on.

Are any of the warning lights on the dashboard on?

No check engine no other warning lights either