There are hardly any options in this size for folks who want to keep stock 18s. The Nitto RG's fit on stock Cruisers with minor plastic modifications. I am curious to hear how these fit on stock Cruisers in comparison to their RG counterpart.
1st of all - the joints look bone dry - as in they have never been greased.
That being said - Toyota joints have gone hundreds of thousands of miles without grease without issue. You sir have a unique complete failure of that joint. Metal on metal contact is clearly evident in addition to...
When the 200's diff is locked, it's locked, mechanically. It is full time AWD unless the center diff is locked. The 200 will never be in 2WD mode unless mechanical failure (rare) or front drive shaft disconnection.
GM makes junk. Anybody that thinks otherwise simply falls for their marketing.