Ended up being DMF failure. Maybe solenoid failure led to this. Did a DSG reset which did slightly help - only to be followed a week later by DMF failure.
She is getting fixed tomorrow along with changing out the clutch pack to a less-worn one and installing new K1/K2/pressure solenoids.
Flywheel replaced along with clutch pack. Running much better.
However it seems it's time to replace the solenoids once my VAGCOM arrives. Mechanic recommended seeing how it ran before installing them.
It is shifting fine but a few times the second clutch has made a light grinding noise when engaging after the DSG reset wore off.
Damn DSG.
Well now there is a squeak that came back in the engine bay. DSG making a new sound. What the fuck. Anyone have any luck getting VW to reimburse partially for after warranty repairs?