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When I was stationed in Korea, some of their taxi cabs made clunking noises during a turn. Failing CV joints will do that. My VW bus did the same - failing CV joint. At least check them before tearing down the diff.

Are you driving around with your locker on all the time? This is especially tough in your machine if it's on pavement. Does it clunk when the locker is disengaged? How many miles on you machine? Can you tell how play? 1/8 th of a turn? Some play is normal.

I would use some sort of torque lube (not motor oil). Resistance to torque in the threaded area can affect the amount of torque that is actually used to hold the parts together. You want all of that resistance applied to the actual torque of the joint and none being used to overcome the resistance of the threaded area. It's similar to tightening a new bolt vs an old rusty bolt. Some of the torque is used to overcome the rusty bolt threads. Whether ARP is better than anything else would have to be based upon what you think of a product's claim. You'll find arguments that using a torque lube will increase the preload stresses when tightening the bolts to spec. I don't see how that can happen unless they've factored in the effects of a dry and clean torqued bolt vs a wet (lubed) torqued bolt into their specs.