Hi Adam, you mentioned you changed the IRD oil a while back, what colour was the oil that came out? If it was grey, that is a sign that the bearings in the unit have been pulverised with the fine particles mixing into the oil. That being the case its likely the IRD may now be fragile and likely to fail at some point.
The Freelander transmission is good and strong, so long as everything is maintained correctly. Problems come though when mismatched tyres are put on the car, tyres are run with different pressures or the Viscous Coupling is not replaced when its viscousness goes to tight. When everything's right, the IRD might have a (say) 300K mile life expectancy - mild tyre differences or VCU tightness may bring it down to (say) 100K mile life expectancy - extreme tyre difference or VCU tightness may bring it down to (say) 1K mile life expectancy. There isn't really a design flaw in this as such, but it is dependent on the owner knowing this and maintaining the car correctly - the design flaw is LR doesn't give owners enough information about it or have any onboard monitors on the car to indicate if there's a problem with tyres or VCU.
Freelander transmission is unique within the Land Rover range. Lots of 4WD specialists understand the Series which is switchable 4WD and Defender, Disco & RR which are Permanent 4WD - but don't really understand the Freelander. If the garage you went to is telling people that there is a design flaw and that the props should be removed, then guess what - most of the Freelanders he sees will have had the props removed! Having said that there is an ignorance about how the Freelander transmission works so owners don't check tyres/VCU enough, as cars get older people tend to want to spend less on maintenance, so will replace as few tyres as needed, etc, so yeh - they will and do fail! If he knew what he was talking about, he would be telling you about tyres and doing reasonable checks on the VCU and thus maintaining your car properly with a good life expectancy for its transmission.
Ignore the complexity and arguments on that thread - the 1 wheel up test is simple! I just Googled "1 wheel up test" and the first hit is....
Its all you need to know! Its covered in numerous threads on here - but on here they get hijacked with all sorts of arguments and c**p that hides the real content. People generally do the test with a 1.2M bar and a 5KG weight and you're looking for a time of about 30 seconds (Hippo gets 35 in that video). If it comes back with a minute, be cautious. If it comes back with much over a minute, whip the props off before getting a replacement VCU - and get a decent replacement - either a new one or a recon from someone like Bells Engineering - don't be tempted to go for the cheapest and ask around on here first about any supplier cos there's been lots of c**p recon VCUs made by cowboys.
I'm coming from 1st hand experience, I've had my IRD 'go' through ignorance - its why I signed up on here to find out what went wrong - which was an under inflated tyre. I've been running for a couple of years 2WD since and TBH my '99 L Series has been a great family wagon during that time - boringly super reliable (as it was in 4WD) - economical and cheap to run (as it was in 4WD) - handles great (not much difference to 4WD although other engines I appreciate have a greater difference) - great town and country touring car for us. I wouldn't consider swapping to a 'car' just cos its 2WD - there's no reason/benefit. Having said that I really miss the 4WD, I have the parts to put it back 4WD and really need to get round to installing them!