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Check that the breather on top of the axle is free and the level is correct. It could be a blocked breather is pushing oil past the shaft seal?
Good point here!
This has happened to me a few times, and even made my ARB stop working properly. Spray the breather cap with your favourite lube/rust loosening something and wiggle it with pliers. (and later attach a hose to the thing under the cap and run it up high)
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