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I finally got all the parts and tools I needed to get the rear end fixed up. Of course I ended up with a double ear/sinus infection right before starting the work - but that's what beer is for.
The guy I bought the truck from had replaced a brake line from the front to the rear splitter, the ABS light was on and he clearly still had a leak somewhere.
I built two new lines from the splitter to each wheel cylinder, replaced the splitter block, replaced the bearings, seals, all shoes, both drums and hardware, then sealed and refilled the diff. I bled the brakes and the pedal seems much better with no ABS/brake light.
Well I found the leak:
The rear passenger wheel cylinder had blown out, and the bleeder valve was snapped off. It likely had a lot of air trapped and just blew the cylinder over time since it was not possible for him to have bled either rear wheel after replacing that line.
The axle was also leaking, likely damaged by the brake leak:
I replaced both bearings and seals, this was the good side.