Not sure where the oil is going or why you have to add so much to bring it up to the proper level. One thought, there are two sections to the case, both sharing the same lubricant. It often takes some time for the oil to seep into all areas of the cases. I've filled t-cases after overhaul, let them sit or even test drive them, recheck and add more fluid. Pretty normal process to drive them and have to add more fluid.
I just finished replacing a range shift fork and fork inserts in my NP208. A fairly common problem. I did have to fill the case, drive it, wait a while and refill it to achieve the proper fluid level. The NP208 does have and oil pump that lubes the upper section, so it takes some drive time to get the upper section full of fluid after disassembly.
The NP203 does supposedly require 10W-30 or 10W-40 to properly lubricate the small bearing surfaces. This information is from my GMC Unit Overhaul Manual, dated April 1973. I remember a lot of dealership discussion about different lubes, ATF, 10W-30, 15-40W, GL-5, 90-140wt. gear lube, etc. It seemed to go on forever as to which was correct. The GM factory zone service rep told us to use ATF to be on the "safe side" as he put it....;-) He didn't know for sure either. The only lube related failure that I remember from those days was one truck that the owner had drained and refilled with SAE 90-140 gear lube. It did cook the needle bearings. He used 4 lock quite a bit, probably contributed to this failure. Just info, no judgements....:msp_rolleyes: