What mods were done to the transmission? What I have found is opening the direct clutch feed orifice in the spacer plate causes this issue. If you dual feed plus open the orifice it aggravates it even more. It's called 2-3 hunting. The pump controls pressure by controlling volume. At light throttle angles the pump volume is relatively low. When the 2-3 shift occurs there is a sudden pressure drop because of the high volume demand from opening the feed orifice and dual feeding which the pump cannot react fast enough to. This causes a down shift into 2nd. After the down shift the pressure rises again and the transmission shifts back up to 3rd gear. Then the cycle starts all over again. Accelerating increases the pump pressure so you have more oil volume and the problem disappears. This is why all the tranmissions I build I leave that direct clutch orifice alone. GM uses that orifice size to control the flow rate to the clutch. If that flow rate is too high at low pump pressures this problem will occur. You could have other issues like a leak somewhere like Chris suggested also. This is just the experience I have seen with these transmissions.