'86 W100 snap ring mystery

1986 W100 Power Ram 4x4

Months ago, whilst trying to track down a sound in my front end I popped the dust cap off one of the front axle hubs. I noticed a snap ring installed in a groove on the splined shaft, out in no-man's land not really retaining anything. I then noticed a second groove deeper in the hub with no snap ring in it. I moved the snap ring to the second groove, thinking it was the source of my clunking noise, and put everything back together. Weeks later, I discovered some brake parts were the source of the noise, but forgot all about the snap ring.

The 4x4 system is automatically engaged/disengaged from moving the stick in the cab (vacuum controlled?). It appeared to work before, and seems to work now too.

Which way is right? Why on earth is there two grooves? The previous owner(s) have had the suspension all apart, so the original position can't be trusted. I have not looked at the other side yet.

My 88 is the same way. Should be the same as your 88- dana 44 with CAD.
Pretty sure the snap ring is on the inner groove

Sounds like all the parts aren't there.Does the 4 wheel drive work right? An 86 should have a big flat gear visible as soon as you pop the cap off.

So I would have moved it to the correct groove, that would make sense. Where it was before didn't look like it would do anything.

"Sounds like all the parts aren't there.Does the 4 wheel drive work right? An 86 should have a big flat gear visible as soon as you pop the cap off."

Parts missing is a genuine possibility, however, the 4wd did work pulling me out of a ditch after a distracted driver knocked me off the road a month ago. I can't remember seeing a big flat gear, but like I said, it was months ago when I had it apart. I believe there are a couple 4x4 systems for that truck in '86. One automatically actuated, and one manually turning the hubs. Mine's automatic.

Thanks for the responses guys.

Dana 44 had CAD system from 85-93 (and 94 plus)
Dana 60 had manual hubs for that vintage- selectro hubs and then warn hubs 90-93.
"automatic" hubs were 81-84- didnt work so hot- Loved to thump when cold, or fail

those stub axles were used by more than one oem,thus some used one groove,some used the other