No, they had a Dana 44A, which is an aluminum center section. Not strong enough for off-roading, but probably strong enough on the street. The main issue is that the axle housings could turn inside of the center section.
I don't think the Grand Cherokee had the option of the 8.25. I think it was Dana 35 or 44 for it.
I was thinking that if you wanted to go with a Jeep axle for an A-body, go with a Jeep Comanche Dana 44. The Comanche is a Cherokee, but just a truck. The track-width of the axle is 60" on both a Cherokee or Comanche, but with the Comanche, you already get a spring-under setup.