I need an 8 3/4 lesson. Better late than never!

So for my spring upgrades I installed an 8 3/4 diff in my 74 Duster. It has a 360, an A-500 OD auto trans and my 8 3/4. I put it together with an original housing that I got sand blasted and powder coated, new Dr Diff large bolt pattern axles with non adjustable bearings, 10x2.5" drum brakes and a 4.10 geared cone sure grip equipped 742 center section. It was a supposedly good swap meet special.

When I put it together I first installed the center section, next the brakes, and finally the axles. When installing the axles, I had to tap them in with a rubber hammer to get them to where I could start the nuts and snug up the bearing retainer plates but everything seemed to go together as I expected it would. The only thing I was unsure of is whether I had to remove the spacer in the axle hole of the sure grip. What I read told me I didnt need to remove this, so I didn't.

As I was pulling out of the garage for the first test drive I heard a loud bang. I stopped, jacked it up and rotated the diff and all seemed smooth. I took it for a couple mile test drive and all seemed smooth till I turned into my driveway and I heard another loud bang. I pulled it apart tonight to find broken teeth on the spider gears. Not sure if it will be visible in the picture but there is a piece of spider gear tooth between the case and the spring. I could see 2 teeth that had been sheared off through the spring window in the case.

What would cause this? The spacer i didnt remove? I have a new clutch style sure grip to put in there but I don't want to wreck it too. Any ideas?
Cley
20190417_221037.jpg