I own a 1989 Camaro RS with 50,000 miles. I purchased it not long ago and I don't have the complete history of the maintenance of it. It is in a very good condition but the transmission made a small short knocking noise when it shifted from the 1st to the 2nd gear. I replaced the transmission fluid and filter. A friend that is a mechanic told me that he previous fluid was the wrong one because of the color. It should have been red instead of green. Now the noise is gone but it doesn't shift 100% smoothly yet from 1st to 2nd. I can feel a very short delay between both gears. Is it OK to continue to drive it that way?
The color is just a dye but green transmission fluid is a new one on me. I'd do another couple of drain & fill procedures to get most of the old fluid out and see how it works out. (There's lots left in the torque converter when you drain the pan.)
Yep, green fluid wasn’t common until recently.
As far as modern transmissions with that color of fluid, Most ZF transmissions I can think of use green fluid. And that’s also usually the color of fluid used for dual clutch transmissions’ mechatronic units, both on VWs DSG7 and Ford’s MPS6 (the latter uses the same fluid for the rest of the gearbox)
The more you drive it, the worse it will get. But there probably isn't much you can do about it. Take it to a transmission expert and see if they have any ideas how to prolong its life.
You could think it's the transmission when it could be the clutch adjustment and air in the system.

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