UPDATE: Issue seems to have been resolved.
Took the car to the same Technician. (This time) he dismantled the transmission. First removed it from the engine and dismantled the housing.
He had another donor transmission at the shop which had bad solenoids etc. That we used as a donor.
Then replaced the internal valve body from the donor unit, while retaining the gear sprockets and other components from mine. Also, checked the torque converter which thankfully was OK (no burning smell or any damage superficially - cant cut it open ofcourse).
Seems to have solved the problem. The shifting is pretty smooth now and the car is very responsive.
I am not sure about the ATF Fluid he put in (it did say DW-1 but the brand was something different than honda. Thinking of a drain-and-refill of HOnda DW-1)
@Xulfiqar bhai - thoughts?