263HD Transfer Case Bearing Fail

[appyacres]

What if 40k miles ago...local oil change the transfer case oil and put the green oil (Auto Trac II) instead of ATF.

Would this promote rear bushing failure in the transfer case?
- no side to side play with yoke installed but up and down with klunking!

Heard that bushing was a bear to get out. True?

Think it would be wise to change the magnesium housing out for an aluminum one when I go in to fix this? Any benefit?

It's coming out tomorrow and I was going to start ordering parts ASAP.

My dog is going to be pissed that there won't be any truck rides for a few weeks