That isn't entirely correct.

This type of connection can fret ( wear ) between the yoke / nut and shaft causing the stack up to be loose but nut still staked in place. I've seen this on drive axles / manual trans internals before. There are also reports that the trans side yoke can wear out the splines causing loss of motion even when the nut is still staked in place.

We need to find out if pinion preload is set by a crush collar or shims. This isn't the same as the shims used to set pinion depth.

If set by crush collar, nut torque isn't measured. The nut is tightened until rotation of the pinion is X amount of force. It is pretty difficult to crush the collar so pinion nut torque will suddenly rise when the nut is tight. This is a judgement call from building many rear ends.

If set by shims, there will be a nut torque as over tightening won't alter bearing pre load.

In any event, be sure to back the back of the seal with grease before hammering it in. This prevents the garter spring from popping off and causing a leak.