Oh OK. Well as far as water, I still sometimes get water in gear oil even with my extended breathers. I think it's possible water gets past axle seals. They are really only supposed to keep fluid from spilling out. Just a theory.
Oh OK that makes sense. If the the housing is getting corroded that would do it. Maybe people aren't extending they're breathers and let water sit in the housing.
I've heard that a lot. But I worked at a offroad shop for over 10 years. We would install lockers including ARBs, I have had the front ARB in my fj40 for a long time. I can't recall ever seeing the issue personally. Maybe something is done wrong on installation? I've had a lot of mechanical...