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The 8.25 will bolt right in, but the drive shaft will be about 3/4" too long. Try to cycle your suspension after the install to be certain the slip yoke doesn't bottom out at the transfer case.
Remember that the pre-'97 8.25 axle isn't really any better than the Dana 35.
The problem is that the 8.25 has a longer pinion snout than the Dana 35. This means your entire drive shaft is moved forward, by somewhere between 5/8" and 1". At static height this probably won't be an issue. The problem is when the suspension fully compresses, the axle moves up and this forces the slip yoke into the transfer case. If it runs out of slip before the suspension has bottomed out, you can damage the transfer case.
Longer shackles will raise the vehicle and pull the yoke out more at static height, but I think you'd have to lift it quite a bit to make up for 5/8" of extra yoke/shaft. Swap it, connect it, and cycle the suspension to test it.
The only two axles that are bolt in without c-clips is the early D35 and the D44. That is why I still have the D35 non c-clip and have not upgraded to the 8.25.