I wonder is the case partially separating when it's loaded at the front (in 4WD)? But the real issue is that there's fluid in that area at all, right? I don't know how the 42RLE is put together, but there's an output seal and the t-case has an input seal, and the area betwixt them should remain dry if I'm remembering correctly. Is it possible you're just seeing symptoms of a bad seal manifesting itself elsewhere as that center area is now holding tons of fluid?
I wish I could remember how that extension housing looks exactly...
I wish I could remember how that extension housing looks exactly...