Was that spacer and beat up shims on the pinion? If so whoever set it up did not do it right, the pinion was moving in and out, so the gears are plain junk. If you say the bearings are good I would sand roll or dremel them out to make them slip bearings so you can get the pattern perfect, and buy new shafts, new R&P, new bearings and be done for about $400. Drag radials did not break that suregrip, it was put together wrong, factory service manual for that, carl jantz u-tube to learn how to slam a dana 60 setup in 5 minutes with slip bearings. If I recall the new shafts will not have the hole in the middle, so if you have tapered axle bearings you will need to drill them, and add the thrust spacer. If you have greens then you do not need them. One other thing would be if you have aftermarket axles make sure they are not to long and that is what broke the shafts.