I have a Dana 44 front end, with the hubs locked but not in 4x4 its fine. When in 4x4 the front end is grinding bad when turning, if going striaght it only clunks under pressure. I checked the fluid and yes there was some in there but it was gray so I topped it up and added some slip agent.
Problem is still there, help me before I loose my front end please.
With the manual hubs locked on my BII and not in 4X4, I can hear that the front diff is "a little worn". Now the fronts are unlocked and there is no noises.
I would suggest that you unlock your hubs just in case the front diff is getting ready to pop.
I know this isn't a whole lot of help, but I would take the problem to someone qualified to "fix" a diff.