I don't think so, even if one was completely disconnected I don't see how it would cause this. Only thing I can think of is maybe more oil than I thought was leaking out and maybe something burned up from lack of oil.

Also can anyone confirm how the axle shafts are held it/ what I need to do to fix it? I looked at the diagram in the manual but can't really tell what exactly holds it all together.

1989 Montero 4dr V6 3.0l