No, that was not the reason.
Steady State Slip was programmed in for "Misfire Diagnosis". If you have a M/T, your clutch has "dampner springs" between the input shaft of the trans, and the clutch itself. These springs absorb the radial vibrations of the trans and driveline (or engine) from the other component (engine/drivelne). With a lock-up TC clutch, ther are NO dampener springs. In fact, the connection from the tires all the way to the crank is 100% solid. ANY vibrations in the drive line will be transmitted directly to the engine via the crankshaft. Misfire detection is based on the waveform of either the crank (most cases) or cam sensors. So, any external vibrations transmitted to the crank can show as a misfire. Solution: allow *some* slippage of the TCC to "absorb" those small vibrations.