I strongly suspect that if you were actually smelling the PCM possibly melting you would be losing far more systems than just the transmission control. That type of loss of one control output only generally is internal and makes no smell at all because nothing melts. Chip just fails in an extremely small local area inside. The PCM is also under the hood so harder to smell it. I'd be looking at the big red and green wires going into the cabin fusebox, the blower motor will start acting up when those wires melt. Pull fusebox loose from its' mounting and let it hang down and check the wires going in the back, mine melted too, most of them in the scrapyard are the same way, the wire connectors used there are too small. If solenoid wiring is bad I'd look at the portion outside the car that weather affects first, the part most likely to fail. '98 models are horrible about heat getting to the main underhood harness, the wires crack everywhere.
The P0125 insufficient coolant temp code will prevent trans from shifting correctly too, the PCM will give shifting strategies for a stone cold trans or may even go into limp mode which will shift like pure crap.
Not shifting AT ALL may mean much deeper problem, or the trans exploding inside forward clutch like almost all of these do when trans gets old, the instances of erratic shifting that go away can easily be evidence of that happening little by little. The forward clutch drum breaks off small pieces of the edge bit by bit until enough has broken off to let the forward clutch pressure plate spring out and strike the planetary gear housing, you lose all motion at that time. 68K is early to do that but it has happened before.
Or the pump driveshaft has stripped the corners off to make no pressure at all, since pump quits pumping.
The valve body has wear issues associated with the EPC solenoid that 1747 code refers to, the valve wears to leak and EPC pressure goes high to make the big blowup I described happen faster.
Although PCMs can and do fail I would suspect other issues far faster, PCM failure is very rare, even though everybody wants to blame them. Virtually every one I sold when working for the parts people did nothing to cure problems, it got to where I cautioned them big time and they STILL wanted to get one, of course no warranty on that once installed. They all cried about it when they couldn't get money back. Blaming PCM is the mark of someone who does not work on cars in my view. One should 100% guarantee all the rest of system is correct before going there. Far more likely to be a wiring issue.