according to gm tsb that issue was not supposed to apply to 8.6" gear axles on the Tahoe rear axles. but there is a gasket for the cover. smear some gasket sealer on it resistant to oil and you should have no issue.
look yourself. maybe i am misreading it.
Models:
1999 Cadillac Escalade
1988-99 Chevrolet and GMC C/K, G Van and P1-3 Series Models
Built after the VIN Breakpoints (C/K) listed.
This bulletin is being issued to inform dealers about the compatibility and usage of the new Fuel Efficient SAE 75W-90 Synthetic Axle Lubricant, GM P/N 12378261 (In Canada use P/N 10953455), with current axles, and with the non-synthetic axle lubricant, GM P/N 1052271 (In Canada use P/N 10950849), for the rear axles on the above light-duty trucks.
Testing has shown that the new synthetic lubricant will chemically attack the Room Temperature Vulcanizing (RTV) sealant. Use only the non-synthetic lubricant, P/N 1052271, in axles using RTV sealant (See 9.5 and 10.5 information below).
American Axle and Manufacturing (A.A.M.) has approved the use of the new Fuel Efficient SAE 75W-90 synthetic axle lubricant for rear axles with the following restrictions:
^ All 8.6 inch axles are compatible as originally built. ^ 9.5 inch axles on vehicles built prior to mid-February 1998 are NOT compatible because RTV sealant is used on the cover pans. On vehicles built after mid-February 1998 and equipped with 9.5 inch rear axles, synthetic lubricant, P/N 12378261, can be used because the RTV was replaced with a gasket. Other mid-February changes to the 9.5 inch rear axles include a new cover pan and cover pan fasteners common to other axles.
Important : The new cover pan is not retrofittable to the housing of 9.5 inch axles on vehicles built prior to mid-February 1998. A new retrofit kit is available that will enable the use of synthetic lubricant for vehicles built after mid-February, 1998. ^ All 10.5 inch axles prior to March 3, 1999 are compatible if the axle shaft hub seal (RTV) is replaced with P/N 327739 gasket when changing to synthetic lubricant. As a product improvement, this new lubricant has been released into 1999 current production C/K vehicles built after the above VIN breakpoints (Except HD3SOO models which use 75W-140 synthetic lubricant, P/N 12346140).
It is recommended that synthetic lubricant be used when changing rear axle lubricant for the following reasons:
^ Potential fuel economy ^ Lower operating temperature under severe usage conditions Important : ^ You do not need to wash/rinse any non-synthetic lubricant from the axle cavity when changing over to a synthetic lubricant. However, you should remove debris from the magnet and the bottom of the axle cavity whenever the axle fluid is changed. ^ On light-duty trucks equipped with locking differentials, do NOT use a limited-slip additive.