Full of swarf and particles!

I did a simple fluid drain and refill in 2017 at 124k now at 127k i did a fluid and filter change..
the last filter change before me was 2003!!
The filter came apart with a pair of pliers..

Hmm..

Could be clutch packs breaking up?

Well, it can't be great news - but I can't think of a reason to stress about it until you lose drive/gears. Unless you're the kind of guy who can rebuild an auto transmission I'd say leave it till it breaks. It might be time to read up on pulling the autobox and browsing Ashcrofts site ready for the day. Maybe not today, maybe not tomorrow - but some time... ;)

you have a real problem their . i personally would not drive it . don't be frightened to pull an auto to bits , its not that difficult their is less in an auto than a manual IMHO . just read rave for instruction, basically remove valve body and open the case, 100% dismantle and clean everything spotless . do not use fluffy rags no lint it gets in the valve body and jams up the valves. it must be spotless on reassembly
ps the plates are fibrous like clutch plates in a motorbike clutch, not grey chunky bits of aluminium and the black stuff is metal
it also may be cost prohibitive to repair , you may need to find a replacement .
pss and your oil is also burnt , so there is something rubbing on something it shouldn't be. sorry it's not what you wanted to hear

Has the filter still got a very fine mesh visible inside?

Ah, so at least 17 years for filter?
Wow. Possibly got moisture in fluid causing it to rust?

The filter has a very fine mesh inside, mine did it's job..

I've got a HP24 on the shelf I rebuilt a few months ago, but its finding the time to fit it...

The current one is holding stong at the moment!

If i hadn't ripped the filter apart i'd never of known lol

Oh well!

Well, if you've got a spare on the shelf... you just need a box of Tuits. I'd lend you some but I'm running out myself :(