New transmission

I would just do the sensor and roll.

Has the transmission been hunting or shifting frequently?

I can't tell you about the metal shavings, but I have had several MOPARS (Chrysler, Dodge, Plymouth) that I drove long enough to have transmission problems (typical for me anyway to have them by 130,000 miles, sometimes as early as 90K (or a hair earlier), and sometimes later than 130,000. Mine were minivans and sedans, not full size vans. But anyway, the cheapest deal I had for a rebuild was $1,200 a good number of years ago which was an afterhours repair will only a handshake warranty. Even that would cost much more today, if you could even find someone to do it. You will want a written warranty. I have paid in the ballpark of $2000 for a full rebuild several years ago for a minivan, and would expect that to be higher now. My last transmission diagnosis on a MOPAR minivan was now 7 years ago and the estimate was $3000. What I am getting at is that a $2,200 estimate if it is a complete rebuild seems like a very fair price today. Get the warranty, and before you commit, ask what warranty network they belong to. I believe many repair shops, whether a chain or not, may have a way to offer nationwide coverage of the warranty, but ask to make sure.

Metal is never a good sign. I agree that I would rather fix it now then on the side of the road.
If you have the option a factory remanufactured unit (jasper) might get you a better warranty.
Either way I wish you luck.

well metal in the pan is a great sign of a break down in the very near future. . 2k sounds fair I had one put in a honda that cost 3k. better to be able to control your emg than have it pop up on a sat evening when things are closed till monday. I,d go for a new tranny.