742 case setup help

I snugged it so there was drag on the bearings, close to the 20 inch pound turning torque. The ring gear was marked from Richmond for .008 backlash and I got it .007.
IIRC the final torque on the pinion nut is around 240 ft lb,,
Your snug setting is no where near that. You will need to put some load on the pinion bearings to get an accurate pinion torque number and when determining the pinion torque to turn, you should have a torque wrench that reads in 1 lb increments.