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I haven't posted here for years, partly due to login issues. @Turbone fixed those for me recently (thank you!). All the Subarus I had before have moved along, but I have more than ever before - 2006 Outback Wagon, 2004 Legacy Wagon, and the newest arrival is a 1994 Loyale AT my son just bought. The engine is suspect from a large oil leak that resulted in the engine's being run low on oil. We'll see about the leak and then if the noises clear up. His goal is to put a dual range MT in is but we'll see how easy that is to find...

In second gear, when you clutch in does the noise go away?

It was a terminal connection issue coming from the driver's door to the dash harness. The hatch still only works as manual. That's less annoying than manually locking and unlocking doors from the inside so I'll leave it for now. That breaking noise I heard I believe was a locking rod disconnecting from its socket. One on the driver side was only semi-connected.