In 2wd I can easily spin the front prop by hand but neither front hub rotates and there’s no real noise or ‘grouchines’.With the transfer box in 2wd, what happens when you rotate the front pshaft? If there's a problem with the diff it might give a clue. The expected result would be the n/s hub rotating and no noise or graunchiness, but that won't fully rule out the diff.
I think you're going to have to strip the o/s hub off the axle to pin it down.
I don't have any explanation as to why loosening the n/s wheel nuts made any difference, unless the wheel itself was fouling something.
The hub nuts being loose is interesting but not unusual if they weren't tightened properly. If the same person worked on other bits it might explain what you're soon to discover!
I can't help with the oil leaks. Looks like transfer box which might been have been damaged enough to strain a joint. Whether that caused what's happening in the front axle or vice versa is still a mystery. (To me anyway).