I have no experience with a dana 35 ttb with a v8 behind it. That being said, my experience with other components has led me to believe most people breaking things are taking them to the limit. This would be revving the engine a dropping it in gear, being in low range and bunny hopping up a trail, basically being abusive to the vehicle. We all have done it. That's when things break.
If you do not do 4x4 burnouts after you swap the v8 in place, I don't see why it would not work.
I have a 65 mustang fastback with a mild 302 with a 4bbl and dual exhaust. The c4 transmission went bad years ago. I found a deal on a c4 from behind a 6 cyl maverick. People said the 6 cyl transmissions did not have as many clutch packs as the v8 transmissions. This is probably true. That transmission has been in there now about 30 years, and it still works fine, and I don't baby it, but I don't abuse it or tow with it either.
I have a 1989 f250 with the 7.3 diesel. When I bought it, it had 35 inch tires on it with the dana 44 ttb HD under the front, that is what came stock. If you talk to people, the dana 44 axle should crumble trying to drive 35 inch tires. It didn't. On top of that, I put a 7.5 ft snowplow on it, with the 35's. Plowed snow with it for 5 or 6 years. I did have to replace the balljoints a few years ago, but they were the factory joints I took out and that was at 120,000 miles. It never gave me a problem.