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Q: What is causing this rubbing sound from transmission? on 2008 Chevrolet Cobalt

It started making a grinding or rubbing sound. Almost like a wheel hub bearing, but I know its not because I took off wheel hub and CV joint and started car and put it in drive up on jack stands. It has to be transmission. It has plenty of fluid, shifts fine. It happens any time I drive.
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There are several bearings in your transmission that can make this noise, but all of them require the same fix: rebuild or replace the transmission.
Now if this is a manual transmission, you could have a slipping clutch, but you would notice the engine RPM high, but the vehicle speed low.
For an automatic transmission, don't operate it any longer until you have corrected the issue.
There could be an issue with the front pump. torque converter, or differential as well, but, again, you'll still need to pull the transmission, inspect, and replace damaged components. We may have a certified transmission shop in your area, just take a look at this link and see what is around:
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