Found the answer in the Haynes manual on driveshaft removal P. 157.

"use 2 large open end wrenches to loosen the sleeve nut (approx 2 turns). This will permit the shaft to be slightly compressed to simplify removal."

So it does sound like it is some kind of collar. I need to check that I didn't make that nut too tight. Should be 30 ft lbs. Don't have the special 46 mm crows foot for the torque wrench so will have to wing it.

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85 300D turbo pristine w 157k when purchased 167,870 July 2025
83 300 D turbo 297K runs great. SOLD!
83 240D 4 spd manual- parted out then junked