You'll have a fire if it's blowing out on the exhaust.
Common automatic transmission leak points are the pan gasket, cooler lines, input seal, and output seals. The 4T65E has an end cover on the LH end of the transmission too. As long as you're using the original gaskets the pan and side cover usually don't leak. If it's coming out around the dipstick tube with a new seal it's probably overfilled.
The original AC Delco GM 24206182 steel core 4T65E pan gasket
is right around $30. It's reusable multiple times and it doesn't leak. I hope you or the previous owner didn't put it in the bin. The gaskets that come with the strainer, what you're calling a filter, should be put directly in the trash bin. They will not seal like the OEM gasket.
Transmission fluid levels aren't checked like motor oil... with the engine off. They need to be checked with the fluid warmed up in PARK with the engine running. The dipstick usually says how it should be done.
If you have it overfilled it'll aerate the fluid and cause other issues.
Did you replace refrigerator magnet that GM originally installed in the pan on your 4T65E with high temp magnets following the instructions in GM TSB 08-07-30-040C
Did you check it with the engine running, in PARK, and the transmission up to temp?
Did you use Dexron VI? If you used fluid claiming to be Dexron III or some other transmission fluid you need to get it out of that transmission ASAP and refill with Dexron VI.
Dexron VI is Dexron VI... It doesn't have to be GM AC Delco branded Dexron VI as long as the bottle says Dexron VI and not "Dexron VI compatible". WalMart Supertech Dexron VI is fine. Draining, re-filling, running the engine til the trans is hot and draining again... twice... should dilute the remaining Dexron III, on the third fill with Dexron VI, to the point that it won't hurt much.