Ok, now you know why I was asking at the $300 level. The 5R55W uses a solenoid "block"... all the solenoids in one unit. And that price is about right.
Two things come to my mind. First.... had I been the shop, I might have been inclined to replace the fluid FIRST, before I exposed a brand new solenoid block to it. (I'll not be too critical on this point though, 20/20 hindsight is easy). But, they are right in that bad fluid in this tranny can cause a lot of problems.....I'd say...Let them flush it and INSIST that they use Mercon V, and not some additive to make a lesser grade "act" like Mercon V. (Long story, trust me on this tell them you insist they use Mercon V and ask to see proof of it - like an empty bottle). Ok...short version... Mercon III can have an additive added that makes it perform like Mercon V... but V is a semi synthetic, and III is non-synthetic. USE V!
Lets keep our fingers crossed. Ordinarily I would say that if that does not fix it... you have have some valve body or separator plate issues. BUT..... and sorry....
You still have electrical codes!
I suspect you might have wiring harness issues, either internal or external wiring harnesses. Bad fluid will not cause it to throw codes of that type in my experience. Those codes are saying the solenoids for one reason or another are not acting ok. ELECTRICALLY. IF this is a new Solenoid block it must be external to the block.
I'd let them add the Mercon V, it needs it anyway, but I do not think that is going to solve the code issues. Let's see.