Is this a close ratio gear box from the mid 80"s? This happened to mine at about 75,000 miles. The diff pinion shaft hammers it way through the big rivets holding the ring gear on. VW left off the snap rings on the diff pinion shaft as a cost shaving measure .
yip diff pin worked it's way through the top hat on one of the two rivets that hold it The diff pin actually has a circlip grove ffs