Pulled the tcase and transmission tail housing. It didn’t seem that the seal in the tail housing that seals over the tcase input shaft was even touching the input shaft. Couldn’t feel it engaging and it didn’t seem to clean the input shaft when you installed and removed the tail housing.
Couldn’t find solid information online about the seal so I Took the tcase and tail housing up to a transmission shop.
Side bar; I noticed a nice Grand National in the lot and noticed from across the lot that it wasn’t an 8.5 or 10” rear end underneath it. It looked like a D44 from 40’ away.
I asked the guy that was helping me (the owner of the shop) and it was his car. I mentioned the rear axle didn’t seem to be stock and asked if it was an 44, and he perked up then corrected me that it was a D60. He was happy to help me out at that point.

gotta love gearheadz!
Anyway, he got me sorted with a seal. back at the house I pulled the old seal dropped the new one in and you can feel a positive engagement as it seats over the input shaft.
Oddly, for ahits and giggles, I stuck the old seal on the input shaft and it fit properly as well. But you certainly couldn’t feel it engaging and it didn’t wipe the shaft clean when it was installed. Unfortunately, it’s all recessed and you can see it when installing the tail housing.
Sooooooo, not sure WTF is up. It sure acts like fluid is getting around the seal. Guess I’ll just pay close attention to the reassembly and install.