Hi all,
Quick update post to thank everyone for their help and suggestions and to let you know what I found. Hopefully this is of help to others with similar problems.
I decided to rebuild the LT230 just "to be sure". Upon disassembly, I found...
Had a chance to pull the front diff and it looks pristine. No sign of damage and barely any wear to speak of.
I ran the truck while it was on the stands and listened to the transfer case with a mechanic's stethoscope. It was a bit noisy but I...