The rear clutches are used in every forward gear under all circumstances. The air check will verify that the clutches apply, but it doesn't mean they will hold. When you did the rebuild, did you check the clearance between the pressure plate and the snap ring on the clutch drums? I forget which one uses the wavy snap ring, but if you checked the clearance under the low part of the wave you'll be out of spec and possibly have trouble applying enough pressure.
The input shaft sealing rings are part of the air check (the air routes through the input shaft and gets to where it needs to using the sealing rings. So if those were bad I would
think you'd see it during the air test.
The overrun clutch is not used in M1, so if you don't have any movement in M1 then something else is wrong. But if you have Reverse then the low/reverse band is ok, so a missing M1 places the problem elsewhere. I mean, M1
only uses the rear clutch so no M1 really points to the rear clutches.
But is it a friction problem, or an ability to apply full pressure problem? You can run a pressure test (detailed in the FSM) but I've never done one. The idea of having the Jeep up on stands while the wheels are spinning is somewhat unsettling. I guess I would triple check the fluid level (running, in Neutral), and then steel thyself for an afternoon of transmission dropping.
View attachment 562125