A locking TC produces the same issue when the friction pads can't grip the input shaft. The locking motor cycles on and off, rapidly, producing the "shudder" or "rumble strip" sensation.Drive it a while and have another shop look at it. $3500 is pretty high. A torque converter is only $250-300 part. A used transmission is around $500-1000. R+R is around 2-3 hours, @ $150/hr. Does it shudder when you are slowing down(foot off the gas)? That is a bad TC. A shudder is a loss of fluid pressure and could be a misdiagnosed bad TC. There also would be black stuff/specks of clutch in the fluid, from clutches locking up. I have heard of a product called Dr. Tranny shudder fix.
Shudder fix in a can is just a friction additive, and does nothing to fix the worn pads...it just makes them stickier, along with everything else in the tranny. Which is why you should never put it in.
In the OPs case, I still say they put the wrong fluid in, and the TC can't lock the way its supposed to.