Leak between transmission and transfer case

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 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...

There is a seal at the 42rle output, there is also a seal on the input shaft of the 231. The space between (the adapter housing) is dry. I replaced both seals, and have been driving it in 2wd since sunday. no leaks yet. I should also mention that i rebuilt the transfer case. I should also mention that I rebuilt the transfer case with a 6 pinion planetary, Wide chain kit, tera low 2 low kit, and a sye. I also installed a Savvy cable shifter and a Savvy under armor skid.