Is probably passing thru the inching vavle on the left side of the transmission and being pumped into the transmissin itself,on the left side under the floor board is the inching master cylinder(the brake master cylinder is on the right side)....if you follow the brake line coming out of the inching master cylinder it goes to a valve on the left side of the transmission this valve has a cup in it much like a brake master cylinder or wheel cylinder if this cup is bad then your fluid will be going into the transmission
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