Mine did the same thing. I had to split the case then beat it out with a pry bar. From hitting it on the flange, it cracked around axle, where it goes into the housing. Hard to explain, I hope you kinda get it. I had to buy a new shaft also. I found that that little bastard snap ring had rolled out of the groove slightly and locked the axle in the housing. The snap ring was worn smoothish and was very shiny
. Kinda glad I cought that before it broke apart and took out my diff.
I tryed two pry bars, one on either side of the flange for equal pressure and hammering the flange to get it broke loose. Nothing got it freed from the snap ring. We finally had to slipt the case and attack it from there. We hit it with a pry bar because the cross shaft in the carrier was in the way.
I'd say beat on it and be ready to buy a new shaft and snap ring.