Well, good thing I am persistent. Even if I accept the slop as ok, I am more concerned with the discolored steel on spots on the carrier and ring gear. It is evident that it has gotten hot as some point.
I followed my instinct given the other issues I have found with the car, I quickly learned that everything is bad, until I prove otherwise.
I pulled the carrier and the bearings were heavily brindled. If I ran these bearings, I would quickly have had a rear end failure. I will march on with a total teardown and rebuild, only doing it once.
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