ARB has constantly had issues with those o-rings, and depending on what year your locker is you could have one one of the older style seals that are prone to failure. Anytime I take an ARB out to do the bearings I put in a new o-ring.
I just installed two brand new ARBs and noticed the new style o-rings are much better - they have two sealing "lips" instead of being just an "o ring."
"The most unreliable car in the world is the most reliable car in the world." -Jeremy Clarkson refering to the Range Rover
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