If you look you can see the groove where the outside of the race has worn the housing.

Here is a pic of the other side. This is how the driver side is supposed to look.



I don't know if the race spins, or the deflection from the bearing load beats up the case.

I suspect, this all starts when the carrier bearing preload is insufficient.

7068394-Housing003.jpg (250 downloads)

67 Barracuda street/bracket car 11.27-119
68 Dart 502 BB 8.70s-152
414 cid SB Dragster 7.65-174