Spent a lot of time to replace a $6 seal. The faulty seal was readily apparent upon separating the cases. This should stop the flow of gear oil into my transfer case.
Since the PO decided to rebuild the cases and use silicone for the gaskets I took the opportunity to reseal and gasket both cases with the proper gasket kits. The insides of both cases and bearings looked great, so no need for a full rebuild for now.
Also rebuilt the parking brake with all new parts.
After removal
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Separated
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The culprit
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Back in where it belongs
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