Never heard of trans fluid burning in the motor?
There are vacuum diaphragm operated valves on the transmission. Well, there used to be anyway - electronics may have replaced all of them now.Yeah, that might indicate a problem.
Occasionally those diaphragms would split, or sometimes leak around the edge, which would then allow trans fluid to be sucked into the engine intake through the vacuum line.
Lol, I'm a dinosaur mechanic (worked at the local Ford and Chevy dealers in the '70s). Some of the things I learned no longer apply, but many still do. I just don't always know which is which...