Please end this for me.

That's really annoying, and super rare I imagine especially considering that diff looks like it's never been offroad. I'd be prone to send an inquiry to Toyota corporate about it simply because we have no idea what the rest of the welds look like (not to blow a small problem out of proportion, just curious what they'd say).

Good idea. Going to show local dealer also.

Thanks for all the advice!
 
A spot weld should be an easy thing to get done there. No need to drain it or pull the housing. Just get someone who can weld, lift it up, and put a little bead over it.
 
A spot weld should be an easy thing to get done there. No need to drain it or pull the housing. Just get someone who can weld, lift it up, and put a little bead over it.

I was thinking of some light grinding of weld before. I don't know for sure but it looks like whatever material they use for electrode was subpar. Seems to look porus in spots. Figured a light grind (only around leak area) would make sure nothing else would flake off. Not going to drain and yes just a small quick bead.
 
Definitely sand, grind or file it down a bit. If you could reveal the crack that would be even better. Drive to a muffler shop, they'll probably weld it up for you for about 20 dollars.
 
I think I remember this too (but not the outcome).

I'd go after this under the powertrain warranty.

+1

Looks like you're right at that 60 months window for powertrain, unlimited for rust (although limited to sheet metal). From Toyota's site:

Powertrain Coverage1
60 months/60,000 miles (engine, transmission/transaxle, front-wheel-drive system, rear-wheel drive, seatbelts and airbags).

Rust-Through Coverage1
60 months/unlimited miles (corrosion perforation of sheet metal).

https://www.toyota.com/owners/resou...ty&gclid=CKiC2I_W9dQCFYIgfgodYzIIsA&gclsrc=ds
 

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