I would expect a smooth rotation with some resistance.

Got another pinion crush sleeve and installed it using inch pounds this time. All good! Took it for a short drive today for about a hour doing average 40kph. The hottest part of the diff was 150f and that was right where the pinion front bearing would be. I read somewhere you don't want to go 250f or higher with 300f redline. So I'm going to monitor it and hope the temp goes down as the bearings wear in. Thanks for everyone's help.