That axle shaft could be wasted where the joint goes in, if it has been banging around with no needle bearings. Yes, the axle shaft needs to come out to fix it. Caliper/rotor off, loosen (don't remove yet)three bolts from inside of the knuckle, then the tricky part of getting the unit bearing out, NO SLIDE HAMMERS, brass hammer or block of wood and smack on the heads of the bolts driving the unit bearing out. Once the shaft and bearing is out (you can do this without removing the big nut in the center) remove the remains of the joint tap in the new one get the clips on.
Reassemble.

SD