Chris, I'm not sure, but you said that the saildrive smells like gear oil. Does that mean you think it smells like it came out of an old Holden?
I'd call the workshop who supposedly serviced it and ask them what they put in it. Or check your invoice, as it may say what they used. If they used a plain gearbox oil (remember a lot of the simple stuff is left to apprentices, who don't always ask what is the correct oil to use).
It's rare for a manufacturer to change the specs greatly from what was originally specified. So if it was specified to use Type A fluid, then that's what you should use.
Here's some info about it from Penrite.
www.penriteoil.com.au/products/classic-atf-mineral#/ here it says Dexron III is not the equivalent, but Dexron II is.
Disclaimer, I'm a motorcycle mechanic, not a saildrive mechanic, but the principles remain the same. I'm only offering additional information, and I don't have an affiliation with Penrite either.....

We always have a principle in the workshop. Take it back to specifications, check all the basics and then assess whether the problem is still there. In your case, first thing I'd do is make sure the oil is correct before doing anything else.
Good luck with it!