Update:
In my case, it was indeed the transmission valve body or solenoid, the "brains" of the transmission. As you say, this is a known problem in Subaru CVTs and Subaru provides extended warranty coverage up to 100K miles. My car has 148K miles and did not qualify for the warranty replacement. I called Subaru Corporate anyways, requested a goodwill discount, and received a $300 coupon. In hindsight, I might have received a larger discount had I been a bit more persuasive.
The repair estimate was ~$1300 (900 parts + 400 labor) at my single local Subaru dealership. This also included a transmission oil service, unless that is part of the repair. With the added $100 diagnostic fee, which they would not waive, and taxes, I paid $1150 out the door with Subaru's coupon.
They kept the car for a couple of days, I got a complimentary loaner, and now have a transmission that should be good for at least another 50-60K. This is my college freshman son's first car, and expect it will last him thru graduation at least.
I agree with you that the car drove fine with all the lights on, but I had a feeling of impending doom behind the wheel! Besides, there is the risk of damaging the CVT further. That's a $8000 repair, about how much we paid for the car. So, I didn't take any chances and got it fixed. Good luck with your situation.