For future reference, when I did this job on my '85 wagon, I had to loosen the differential mounts and push the diff away from the side that I was removing the axle in order to get the clearance to remove the axle.

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Respectfully,
/s/
M. Dillon
'87 124.193 (300TD) "White Whale", ~392k miles, 3.5l IP fitted
'95 124.131 (E300) "Sapphire", 380k miles
'73 Balboa 20 "Sanctification"
Charleston SC