well...it shows your valves are open! the ATF is running back down and out through the intake...no biggie, just keep adding...watch and see if it runs out when you pour in a certain cylinder...if it runs out immediately....that piston is at TDC or close and the intake valve is open...move to the next one and add more...it shouldn't run out so soon. Nothing is wrong so to speak..just where the pistons are sitting in the cylinders. old says it 'takes what it takes' for the ATF to work.
Once upon a time, I had a JD 430 that was stuck and stuck hard. I finally pulled the head and took a wood block and put it on top of the piston and whacked it with a sledge hammer until it broke loose. I tried everything else I knew and felt I had nothing to lose....it either had to move or come out...in pieces if need be. But, all was well..it broke free. I honed the cylinders a bit, put everything back together and it ran fine. Your mileage may vary.
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