Thanks guys. The dude doing it knows what he's doing, as I know several people that had good experiences. It looks like it happened while pressing the bearing on. Maybe some side glancing force took the side of the pinion threads off. Not sure, but I'm stopping by the shop later today to talk about everything. That looks like rust, but it's anti seize. He did mention that they'd have to be replaced in a set, so that's good.
This is all kinda frustrating because this whole thing has taken 6 weeks, and now this. Things absolutely happen, so I'm not upset about this happening, but the length of time this has taken is a little much. I would've just done the thing myself if I would've known. It's definitely on me for not checking ETA when I dropped it off, but we've blown past a couple deadlines now, and here we are with a tore up pinion.
abuck, it's a 4.30 from a 98. I have a trip in 3 weeks, so I may be looking into buying someone's take out chunk if this isn't done.