The first thing to do, I think, is to determine if the blade's surface
is decarburized. If it is, requenching won't be productive. Remove some
surface material and see if it's harder inside....hopefully it isn't.
If it isn't, that just means that the blade was probably underheated,
and requenching from the proper temp could get you a hard blade.
If it'd harder beneath the surface, I'd say it's probably scrap, because
being only 3/32"thk, if you remove the decarb, there wont be much left.
If decarb isn't the problem, try rehardening it, but don't depend only on the
controller. Watch the colors change...first dark red then lighter...then
when it's near orange, it will get darker. That's the transformation taking place,
(decalescence).....then it will start getting even lighter than before. When
the whole blade has passed decalescence, see what the controller says, then
quench...quickly. This will get you a hard blade, and give you a rough idea
if the controller's probe is in a hot/cold spot.
I'd forget the tranny fluid.
If it gets properly hard, then temper at 450 for two hours, twice.
...Hope some of this helps...