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Pretty sure all the 960/S90/V90 vehicles for the North American market had an AW30/40 automatic. This is a very different transmission from the AW7x boxes used in the 4-cyl cars.
In the AW30/40, gearshifts, OD operation and converter lockup are electronically controlled via a transmission control module ("computer"). There is no overdrive relay. The trans has various sensors and switches on or around it which can affect performance, including the lockup function.
DanR may have the answer. When my S90 had a transmission overheat event it would immediately go into lockup at low speeds. Absent actual overheating you may have a malfunctioning temperature sensor. In my wiring diagram book, this sensor is shown as located just in front of the PNP switch on the right side of the trans, with Red-White and Violet-White wires entering its connector.
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Bob: Son's XC70, daughter's 940, my 81 and 83 240's, 89 745 (V8) and S90. Also '77 MGB and some old motorcycles
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