8 1/4 rear and jeep brakes!

If you have access to ones in good condition for good prices I'd definitely go for it. In fact IIRC the 1997-later 8.25 has stronger axles with more splines.

I really miss my XJ, it was a '93 with the 4.0L I-6 and 5-speed manual. I changed it over to 3.55s (stock manual final-drive ratio is 3.07) and man that thing was so fun to drive both on and off road. Sadly in August of 2021 I got rear-ended by a kid not paying attention and it was a hard enough hit it bent the driver-side rear frame rail and totaled it. I pulled the engine, trans, clutch hardware, driveshafts, pedals, pretty much everything to convert an auto XJ (or one with no drivetrain) to manual.
Bummer! I always wished my XJ was a 5-speed manual. Sold it to a young veteran who still 4-wheels with it up in northern california. Super fun!
I'll keep you posted if I end up finding a good priced rear end to do the swap. Thanks for the tip on the post '97 models. The more strength the better!