Unfortunately after further inspection, this D35 housing is toast. You can see where the carrier bearing had been spinning for quite some time and chewed away at the housing material. You can see how much by the raised edge on the housing and bearing cap. Even if torqued to spec, the bearing race will just spin and be back to square one.
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Based on the customers budget and time frame, the logical option was to just get a new replacement housing from Mopar, especially since we already have all the internals here ready to go.