This came full circle this weekend. I noted I didn’t have functioning four wheel drive. I assumed the actuator in the front axle was bad until I saw a puddle of gear oil on the floor. The right side axle had come loose from the snap ring and walked out of the housing.
Upon closer inspection After disassembly I found that the snap ring had worn through the washer inside the extension housing.
I also saw that the adjuster retainer was broken in several places on the right side.
I rounded up a new washer, a pair of seals, two adjuster retainers and an extension housing gasket. Once I placed the new washer in the housing I noticed that I couldn’t tighten the extension housing without it binding the shaft by pinching the snap ring into the washer. I welded some tabs onto socket so I could turn the adjusters and reset the lash as best I could for a used axle. That moved the carrier over far enough to allow the extension housing assembly to be installed and allowed for a little end play for the right axle shaft. The rest went together without a hitch and it now runs smooth and quiet.
Whoever was in here before was incompetent!