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My son's XC70 had similar issues and it was an alternator that had stopped charging - so, low system voltage as the battery gradually drained while driving. Many flashing lights and weird behaviour of the trans.
Is your battery at 12.6-12.7 Volts after an overnight rest? And then jumps to 14+V after the engine starts?
To state the obvious, the entire electrical system starts with the battery so begin by checking it and the charging system.
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Bob: Son's XC70, my 83 244DL, 89 745 (Chev LT-1 V8), and 2010 XC60. Also '77 MGB and some old motorcycles
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