In that exact situation I would remove the "Dead" pinion
and being careful not to rease the paint marks on the shank
Typically +2, +1, 0, -1 or -2 would set up the new pinion according to the original
Replacement bearings are so close (a matter of a few ten thousanths) as
to not matter.
THE thing to worry about is getting the pinion bearing races completely seated, which is a bitchy job on the best of days.
I keep in mind the fact that ANY foreign material being present while seating the races is "bad", and I have the purpose made tool to install the bearing races.
Even so on axles I'm assembling for my own truck I put the races and the bearing race seating tool in the deep freezer and I literally put a fire under the center housing, I literally put a coleman stove under the housing and heat it to 250-300degrees. doing this the races practically fall in, but I use that big race press tool to clamp them in place, with the center bolt tightened down and leave it overnight to cool.
The next step to "make sure" is to take a pinion (with good bearings) that I use as a tool and "install" it in the housing, this is basically used as a tension device
The pinion without a crush collar is mounted, a pinion flange and oil slinger are installed and a pinion nut that has been "circumcised" (the crimp collar has been removed and a tap has been run through it to make it a "free running" nut)
and this nut is tightened to 250ftlbs and the shaft is turned with a large electric drill motor (I have a socket spud and a 1/2" drive 27mm socket) and rotated at high 1500rpm for a minute and the nut retightened again and the process repeated as required (until it doesn't slack off)
This is all just to verify that the races are COMPLETELY seated.
The point is that if the big bearing race isn't seated the pinion will
walk forward. If the front race isn't seated the pinion bearing preload
will disappear, and in either case the pinion will start walking forward
and back in service and unwanted slack in the axle lets the pieces beat
each other to death...
the next step is to re-establish proper ring gear backlash.
I shoot for 0.0135" ring gear backlash, and I'm patient and OCD enough to
achieve it before I run an axle in my personal vehicle.
it is very rare that I will build an axle for someone else who isn't a
close friend first.
If you haven't bought me a Christmas present or an unsolicited bottle of
bourbon previously I'd probably tell you to do something more difficult that shoving a cooked piece of spagettti up a wildcat's a$$ using a cattle prod as a ram-rod... likely to attempt the spagetti-wildcat trick just to annoy the cat then try to shove the previously pissed-off wildcat up your own a$$
BTW, before anyone asks I have never done an aluminum case dana "chunk"
I run them as pulled from junkyard donors, because in a part-time 4x4 they rarely get run enough to worry about them a typical junkyard 4x4 truck
with 250k miles on it probably has less than 5000-10,000 miles on the
front diff and most of that driving around in winter conditions with the hubs locked and the T-case in 2wd