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Drop by and try cycling through the gears yourself. Start with the car off. Might give you some clues.
I love my 968 for what it is & don't hate it for what it isn't!
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Sounds steep to me, it shouldn't be much more the two hours for removal and re installation (not including the rebuild). I have seen cheaper prices for rebuilding the transmission then that. You probably only need a couple parts in the transmission replaced, there wouldn't be any reason to replace everything in the transmission if it's just a 1/2 issue. Of course a shop would probably charge a whole lot more then two hours for the removal/instalation since it sounds like a bigger job then it is.
Current:
2016 Cayman S
Former:
94 968 Cab 6 Spd. Black/Cashmere D1R SC
86.5 928 Garnet Red Metallic