The AOD has a locking torque converter. Is the engine RPM going up 300-400-ish, or does it go up 1,000 RPM or more when it "downshifts".
Reason I ask. The torque converter will unlock based on throttle position to improve torque. So, modulating the throttle a little can cause the computer to unlock the torque converter. Mine does this and that is normal operation for the most part. Slight hills, etc.
I can't recall right off what triggers the downshift on the 94 AOD. If its a TV Cable or electronic. If your fluid level is correct, then either the TV Cable (kickdown) or the throttle position sensor.
I'll do a bit of looking.
As a side note. There is no "passing gear". The transmission is a 3spd with Overdrive 4th. The "kickdown" function either holds the gear or kicks down a gear depending on vehicle speed and throttle position.