Water in the oil on any engine almost certainly means the head gasket has blown. If it isn't that, you are looking at something far more expensive.
your float could be stuck
Remove the bottom radiator hose on your 1996 Chevy Lumina radiator. Put a water hose in the top of the radiator. Allow the water hose to run until the water draining from the bottom of the radiator runs clear.
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If the pump is leaking or noisy then assume it is failing.
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A 1996 Chevy Lumina transmission will hold four and a half quarts of oil. A 1996 Chevy Lumina will also hold 12 quarts of transmission fluid.
Is that lumina van or lumina car? BClear. 3100, 3400.
how u take off a transmission speed control sensor on a 1996 chev lumina