I would think that your problem likely was caused by rusting of the hub threads. If you look at the ends of the lug bolts you will likely see a lot of rust on the threads. The lugs are plated, so the rust has to come from the hub. The best way to protect the hub threads, in my opinion, is to use antisieze on the threads only, which will transfer to the hub threads and protect them. I understand the torque argument, but most of the torque is developed between the lug and the wheel due to the increased diameter of this contact area, again, in my opinion.

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'97 E 300 D