Whenever you get noises like you describe and the OD stops working it can't do it any good by continuing to drive it. Parts wear out and stuff breaks, it's a normal process. A tear down will be in order. Let us know what you find. There are several of us on this site that have experience rebuilding these units and can help.
Fred


1956 3100 Pickup/Red/350/3sp OD/PS/Disc Brakes
1957 Bel Air Sport Coupe/Red/355/TH350/PS/Disc Brakes
2017 Silverado LT Single Cab SB/Black/5.3/6 Speed Trans
1947 Willys CJ2A w/F-Head engine