Danny. It was low from replacing the one passenger side rear seal.
that spacer I showed with the prior scratches was extremely difficult to remove. Had to heat to remove.
new one needed sanding on it and splines. It started making an odd knocking or clicking noise within .25 miles almost like I was dragging something. It was intermittent not constant every quarter mile or so.
I live about seven miles. everything underneath when I got home looked okay. It was running great. Not an unusual noise to be heard.
If you want to swap the spacer with the axle and tube in place, heat is generally not needed.
But a bearing/bushing puller is. And you also need to get the puller in between the bearing and spacer, so you'll need a knife-edge bearing separator too.
If you hammered on the axle/spacer, and I'm betting you did(because you don't know any better) you most probably did as I stated above with the fulcrum plates. Or damaged the differential, cross shaft, side gears, and spider gears. That MIGHT be the source of your noise and lack of go.
If you had to sand/file the axle splines, I'd look HARD at the drum/rotor because the axle nut was probably loose and the axle and/or drum splines are ruined at this point.
As to your last sentence, unless a gear or shaft went through the trans case, it will ALWAYS look OK. You should have heard the noises my friend's 550 trans made when the reverse shaft self-destructed, taking out 3rd gear and the mainshaft coupler. All this caused by improper assembly and nothing else. It looked great on the outside, and still does after I fixed it.
And every bit of this trouble caused by a couple drops of gear oil. It is hard but not impossible to make these cars not leak. But unreasonable to expect them to NOT leak. They are NOT like a modern car.
My 550 leaks engine oil(which will be addressed as I know where it's coming from). MY FV leaks a little gear oil from one of the side covers on the trans. Again that can be fixed easy enough. But it's honestly easier to LEAVE IT ALONE and top up as needed.