I'm assuming you've got a 4L60E. Maybe you got an over-running clutch going bad? It's a weak point in that trans, but more so with the older ones.
Other possibilities - include the clutch disk inside the torque-converter is dragging. Front clutch pack dragging. Or the parking-pawl return spring fell off.
You mentioned . . . "seems like even when stepping on the brakes, the transmission is still turning the drive-shaft."
Please explain with more detail. Does it want to move all the time even with the engine at idle speed?
You stated earlier you saw a back wheel wobbling when the noise came. What was that about?
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