RE the trans popping out of gear. That's a bad synchro. They are easy to replace on the M45 (no OD), but the M46 is a bit of a headache because of the long main shaft that feeds the OD. You need a press and some patience. If you're going to do it, consider doing the clutch and rear main while you're in there.
The OD could be a number of issues. Most likely it's the seals, but could be the button itself, the solenoid, the relay, or the wiring harness (among other things).
82 Turbo is not factory intercooled from the factory. I have an 82 242T and it can be fun, but it's some work. K-Jet on a turbo is an affliction. Up to you on whether or not you feel like regularly working on a 28 yo DD.
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