Unfortunately, although the output speed sensor bolts onto the
transmission, it isn't considered part of the powertrain. The good news
is that it's fairly simple to do, so the price won't hurt you too bad.
A flare is when the engine rpm's raise and then lower during the process
of an upshift, i.e. a very brief slippage between gears.
I'm not sure what you're describing, and it may be that you seem to notice
the engine rpms higher than they were previously prior to shifting. Many
factors influence the shift point, including throttle application, vehicle
speed, and of course, engine rpm.
In any event, since we know you need the output speed sensor, I wouldn't
get too alarmed unless you fix that issue and the other problem still
remains.
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