Hello, just picked up a 2004 S185 with 1900 hours. Seller disclosed axle seal leak. When I got it home, I jacked it up and found this. without taking it apart do you think the tube has been damaged?
You will need to remove the axle to see if there is any other damage. I wouldn't think there would be damage unless the bearing race wore through or the axle was rubbing.
These run in oil and don't really have much load, i'd highly doubt they would spin like an engine bearing does. It has likely damaged the wear area on the axle, but you can install a sleeve to fix that.
As stated, you need to pull the axle and go from there to see what it's like.