2001 sport 4x4 had a wheel bearing sound coming from the back. Went ahead replaced the bearing, then passenger side. Once removed I spotted groves in the housing. Soaked axle with brake cleaner, went ahead run a towel down axle tube and installed new bearings and seals.
Took it out for a spin and sound is still present. I used Valvoline 75-90 gear oil. So I don’t know what else to check, sound gets louder as you accelerate, doesn’t go away when brakes are applied but gets quieter when slowing down.

jack the rear wheels off the ground and run up through the gears, this is the standard way to find a rear driveline noise. It makes a frightful racket

Did you hammer/press in a new outer race...how was axle where the inner race rides

I just replaced the ones by the brakes side. I’m feeling it may need the inside bearings. Carrier and pinion bearings. As a former mechanic I never messed with inside bearings, my projects alone I just lucked out by buying beefier rear ends that were practically bolt up and go
i called around locally for price quote for a shop lowest I found is 900 not including parts.
I’m curious the thought if I replace bearings would I need to replace the shims?!?! I live in desert no rust, also only off-road it has seen is going to a lake by previous owner.

We are talking about the wheel bearing axle races not pinion bearings i thought. If you put new bearings into old worn races, they will make noise and vibration if grooved

yes new races used when replaced wheel bearing for the rear