this would have an old hydraulic 722.3 transmission, the reverse on those is lazy when its best.
btw - the fill line when dead cold for ATF is not the low point on the stick, On the 722.3 its 5mm below it. The safety switch will usually be ok, but the bushings on the selector lever and manual valve shaft on the gearbox will be shot - which will make this stupid start in R etc situation.
The trans seems to be in need of an overhaul. Sonnax and superior have some really nice kits to fix these problems that arise as these transmissions age. Does it shift crisp or super slushy? - This old gearbox takes regular cheap ATF dexiii - changed every 40,000 kms - dont use any friction modified stuff.