Output shaft + mysterious leak

Hey guys, I recently pulled my transfer case and noticed the output shaft had some in/out play. About 1/4" to 3/8". But no oil leaks.

I've read about the 2 balls that sit under the viscous coupling and how if they are missing it could cause the shaft to move.

I've also noticed a small leak under the tranny. I thought it was the rear main seal. I removed the flywheel inspection plate and found no oil anywhere.

With x-member out and the gusset removed, I was able to inspect the leak further. It looked like it was coming from the pass. side drive axle seal.

Can anyone shed some light?

The output shaft moving in/out a little bit is normal. If it is 3/8" is not normal, the ball is probably missing. Is it something to be concerned of ? No.

If the leak is coming from the passenger side axle, then change the seal. Its easy.

Yeah, I figured as much.

I'd say more 1/4" than 3/8" lol

Thanks Reza