You have a seal leak causing the differential oil to get onto the rear brakes shoes.what is happening is the brakes grab the drum and shift until they can`t move(turn)any more causing the clunking noise.the groove in the axle if it is bad enough then it will need a axle sleeve installed which gives the axle were the groove is a smooth surface,it is a thin metal sleeve the diameter of the axle that is installed on the axle.
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