Hi Lamar,
That looks pretty typical. If you bought a new angle gear collar, you'd find that it's quite a sloppy fit on the angle gear splines. Hardly any interlocking means the new sleeve will strip out "prematurely" - within 10m when I did mine last time. I had an angle collar with perfect splines, but the gear had several missing teeth and it made a hell of a clicking driving along.
I've bought 2 replacement angle gears now, from reputable wreckers and "low mileage" cars…all the same junk.
I think you've got only 2 choices.
Spend a fortune and a lot of machine time, and weld the collar to the angle drive permanently. Means the angle gear can't easily be rebuilt again, but I figure it's basically junk now anyway. Then you've got to overhaul your prop shaft as well, which isn't technically rebuildable but can be…but expensive as well
Or, just leave the prop shaft out, put it together again as it was (grind out the angle gear stripped splines if you want to have no clicking or rattle in the future) and just use it as FWD.
I've tried the expensive way, but couldn't find a good enough angle gear. My sister's and my friend's V8s have functional AWD (and it works great when it works) but theirs have way less kms. Mine just isn't worth throwing that kind of money at, unless I can find a salvage wrecked XC90 with no kms for cheap. I looked into whether the diesel angle gear may have had a gentler life (because I understand the D5 only kicks in the AWD when it slips, the V8 has 80kW going to the rear every standing start…but I could be wrong there)
