If the circlip was present, it might have left a circlip-shaped pattern on the
side of
the bearing. Can you see any evidence of that? If there are no such patterns,
and the groove on the shaft does not appear to have had a circlip in it, I bet
that it was never installed in teh first place.
It looks like the splines on the end of the shaft did not suffer, which is good.
You might be able to search for the circlip (fragments, presumably) through the
oil filler hole
with a small, strong magnet on the end of a piece of coat-hanger wire. It
would certainly
be worth an hour or two of your time, if you can avoid having to remove and
open up the diff.
Doug Braun
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