Took the governor apart last night and thoroughly cleaned the valve and the inside of the cylinder. Everything moves freely and valve slides up as it should when both arms are moved together. Before I put a gear back on, I pushed on the bottom of the valve and both arms retract as they should. Installed the gear, put it back in the car and still the noise. One arm flops freely and the other stays retracted from fluid pressure. I guess I’ll try another rebuilt governor but I’m starting to suspect that it’s losing fluid pressure somewhere. The bore that the governor came out of looks clean with no pronounced grooves. Maybe the whole transmission needs to be rebuilt.
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