8 3/4" Axle Shaft Seal Repair
I remove the collars per the FSM just like my friends dad, a NAPA machinist, showed me in my "broke" HS days. He smacked the chisel maybe three times and the collars came right off. While he showed me this, he read me the riot act cause he knew I adjusted the bearings wrong. Started something like "You damn kids don't know....(and so on and so forth).......".
Notice the "sleeve". It's there to protect the axle from mishap..........
Anyway I think I'd try to clean it up. Test fitting the new seal on the shaft may help you decide on whether to press the new bearing on that shaft.