I personally have never used the Seafoam product, I have heard of mixed success with using it just like everything else. I dont see it causing problems with normal friction material on the bands and clutches. If the clutch or band had problems already with deterioration, this product could accelerate it, just like new transmission fluid can.
Problems with the governor sticking after rebuild were common, especially if the trans had a large failure and made a lot of debris. The new hot transmission fluid would dislodge debris from the cooler that the flusher missed and it would end up in the governor. Lubeguard was great for coating the valves and keeping this debris moving on to the filter.