That's the simple explanation. In turns the LS, with proper amount of friction modifier, will release the outside wheel other wise it will try to drive it at the same speed as the inside wheel and that is what causes "chatter". The outside wheel needs to move faster because it is going a further distance. If the clutches don't release the outside wheel moves slower or in a sense it is locking and releasing, that's what causes the "chatter". That is the nice thing about LS verses most positive drive diffs.