Conditions for Setting the DTC
WARNING: This page is about a different car, the 2008 GMC Sierra, 2008 GMC Cab & Chassis Sierra, 2008 Chevrolet Silverado, and 2008 Chevrolet Cab & Chassis Silverado. However, it is still accessible from the selected car via links, so may be relevant.
DTC P0721 sets when the TCM detects an unrealistically large change in output speed or if excessive noise is present in the output speed sensor circuit.