If its OEM then its probably like mine was: Hard plastic breather line. I replaced it with rubber fuel line hose. The actuator shaft does not vent to the diff/axle housing; actuator rod is sealed. So if you're getting water in the diff/axle housing its coming from: The position sensor, the breather or the axle seal(s).
I can only assume the breather is apart of the actuator...I assume it gets hot/cold quickly too otherwise no need for it...dunno for sure. When you blow on the breather line on the actuator no air passes.
Related: Here's what I know from experience: The rear diff breather was too small diameter for adequate air exchange on my '99 100 for how/where I drive; I've got $$$ receipts to prove it. As soon as I drilled & tapped it out to...I think 3/8" NPT with 1/2" ID clear hose run vertically up to a terminus at the rear tailgate upper/lower junction...all my axle seal issues, water in the diff, etc. ceased.
IMO you can not have too large a breather line...a desert racer clued me in to it. You'd be shocked how much oil, on say a 50mph run across miles and miles of washboard/undulating terrain, gets slung up in the breather tube. Ditto for seemingly copious amount of air volume that is exchanged hot to cold scenarios. So if the ID is too small that thick diff lube will sit there...especially if the breather line is run frontward along frame rail (horizontal) to the firewall like most of the 80 guys do it. I had diff lube clear up under the line sitting under my driver's seat...completely plugged.
When the clear tubing I used for the breather was new I'd see diff lube residue 4-5" above the breather port after a good hot run across the desert. Since there's a good 18" or so vertical before the line transitions to a short horizontal stretch its alleviated my issue. Proof enough for me.
Don't ask my why the 80 guys don't experience the same...dunno. It just solved my issues and that's all I cared about.