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Just answered the exact same problem/make/model. This sounds like an AWD problem. When you turn the wheels sharply, the tires rotate at different speed, the tires on the inside of the turn rotate fewer times than the tires on the outside of the turn. Subaru systems adjust for this difference in rotation to make the turn and operation of the system smooth. The problem is, your system isn't 'adjusting' for the tight turns, the wheels are trying to rotate the same, which results in the drivetrain 'fighting ' with itself, resulting in your excellent description of the symptom. You need to have the AWD system checked and repaired to correct the problem. You dont mention mileage, but due to the cars age, and probably mileage, this isn't unusual.
Binding on tight turns are usally caused by a fault in the transmission tail end. You can check in the following order. 1. Trans fuel level/ Change several time to flush the system.. 2. Speed Sensor that sits on top of the tail end. 3. Duty-C Solenoid inside the tail end 3. Clutch Pack
there might be more than one issue here. its common for the early auto transmissions to not have the extra shims added to the center differential. This causes binding for the front axles and can damage a few parts. There was a recall for this many years ago. The other possibility is the valve body is manufunctioning and not fully engaging the gear your selecting. The fix is to get the valve body overhauled/rebuilt or replaced
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