Can't say for sure what your problem is. But, I bought a TH350 out of an 11sec Nova, when he switched to a Glide.
I put it behind a 455 Pontiac engine. It broke the intermediate sprag outer race, on the first 1-2 shift. I was told that I needed a hardened outer race. So, I bought one from TCI. My 455 also broke the TCI race on the first 1-2 shift.
But, nowadays they have the HD 36 element sprag/drum/race assemblies, which are much stronger. There is even a spragless set-up available. Lots of class cars have run these HD TH350's, without breakage.
But, lots of the class guys have switched to the TH200. So, if you post in the Stock/SS section, you may be able to find a good deal on a used TH350. Or, at least they can give you contact info on guys who can build a good TH350 for you.