Actually, the TC can lockup and there be little wrong with the transmission. The TC is heavy and can take a lot of abuse and heat in a diesel application, that can cause the pump cover to warp and bleed pressure into the lockup circuit cause the clutch to drag. However, the typical failure does not involve the TC clutch, rather it is the sprag clutch on the impeller that gives the TC a "stall" that fails and locks like it normally does when wheel speeds go beyond 35 mph or so. The sprag clutch locking is essentially a no stall TC and it is trying to pull all the time, not only does it try to pull thru the brakes at a stop the truck is doggy off the line as the lack of stall won't let the engine rev correctly. Once it is up over 35 mph or so it shifts and works fine. The less common failure is when the sprag completely fails and the truck refuses to move at all, once that sprag fails to lock at all it is just free wheeling. Sometimes you see the result of the failure with excess clutch material or maybe metal fragments in the pan, other times there is almost no FOD to indicate what the issue really is. The OE TC's are notorious for failing the sprag clutches and randomly warping the pump cover causing problems. Ignore the issues long enough and it will require a full trans rebuild.