Automatic gearbox clutch packs wear gradually over time. The friction material on the clutch discs thins out, reducing the clamping force that holds each gear. Once the material is worn, no amount of fresh ATF will restore the clutch pack's ability to hold cleanly.
Solenoids suffer from varnish deposits and wear in the solenoid bore as the ATF breaks down. They begin to stick, which causes inconsistent hydraulic pressure and erratic shifts.
A fluid change at this stage helps maintain what is left but does not fix worn clutch packs or sticky solenoids. A full overhaul, which renews the consumable parts inside the gearbox, restores the gearbox to a known-good condition.