oh no, is this 8.75 housing too bad?

That, my friend is junk. A rear needs to be narrowed AT LEAST on a jig to insure that the ends are square, and at best, with an inner sleeve and rosette welds. The offset there will never allow the seal to sit properly on the axle..and with that level of sloppy, I'd have serious doubts about the integrity of the weld. Don't use it, man.