Extended breathers are only part of the fix - the axle seals are a real weakness as the design of the seal is to keep solids out and lubricant in, not to keep fluids out. There is only a wiper lip on the outside of the seal, and it really only keeps chunks off the inner fluid lip which deflects lubricant back into the case. With marine applications, we've been having some success fitting slim series seals which are usually a little over half the thickness of standard seals and installing them in tandem back-back (one seal normal way round and the inside one reversed). This allows packing grease into the space between the seals, and despite this I've still found water ingress between the two seals in the grease between the seals! This is on hydraulics gear that's immersed in water and operating so doesn't have the same contraction problems.
I've not really found a successful way to do the back-back seal thing with automotive applications, as the recesses are designed to fit the seal they ship with and that's your whack jack. 'Marinising' the seals by replacing the tension spring with an O-ring and giving a more consistent tension on the seal lip helps, especially if your seal keeps chucking the spring out and destroying itself (often a sign of a bit of shaft runout out at the seal area). But as soon as you dunk the seal in water, especially if it is hot and it cools rapidly you are liable to drag water in past the seal into the case. This is on all shafts, not just axles so the transmission and transfer cases are liable to have this happen as well. The Safari I had for a while had a buggered PTO shaft for the gearbox driven winch, this used to drag water in as soon as the thing got wet. Pain in the arse!
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