I've had this issue and took my car to my local Independent Volvo dealer. He fixed this by putting the car into S mode and then driving along for 10 mins or so using the gear lever to go up and down the gears. He advised that this is a known issue if you don't use the S mode. After he had done this, the D selection was smooth again. He did advise to use the S mode regularly or go through the above process every so often.
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