Locked Dana 35 crunchy crunch

For a week I ran 35" tires on a Lockright-equipped Dana 35 while I was waiting to get a new axle installed.

After about 30 miles of light street driving, the rear end was clunking and humming.

The axle is junk, but I'm trying to figure out if the lunchbox locker is salvageable for a friend. Does this look and sound right? The oil has a wonderful metallic sheen.

So don't run 35"s on a D35. Not even once. But it ran 33's just fine.

pull it apart and inspect each piece
the pins may be bent, but not to worry, they are fairly cheap

Sounds like a plan. Thanks.