Grinding noise when braking

[Mertz]

I have a grinding noise when braking or decelerating. I checked the rear brakes and one had a lot of dirt in it but the pads are fine. I reinstalled the bearings and per loaded them but the manual had me tightening the lock nut 175 ftlbs and that locked up the drum. I backed everything off and torqued the nut to 60ftlbs per the manual and that seem loose so I tightened them till I got some drag and backed them an 1/8 turn. Then I took it for a drive and still got the noise but not as bad. So I pulled the front wheel and checked the pads and rotors and they are fine. Just a slight rubbing noise when I turn the hub.

Could this be a driveline issue? It sounds like metal to metal grinding. The carrier bearing looks ok. I would think if it was driveline it would always make noise but it doesn’t when accelerating.

1972 C20 8 lug wheels