I got you confused with another member who had the pinion bearings go and the pinion contact the differential carrier. Yours isn't as bad as his, but still, I'd be a bit concerned with that much metal running around inside the pumpkin.
Check out the damage on his carrier. Crunched differential

Kevin
1951 Chevy 3100 work truck
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1929 Ford pickup restored from the ground up. | 1929 Ford Special Coupe (First car)
Busting rust since the mid-60's
If you're smart enough to take it apart, you darn well better be smart enough to put it back together.