hi col, ive always just used a good quality silicone grease on both sides of the washer and had no problems,if the diff is squeeling under acceleration it sounds like the diff is not tight enough or is coming loose after a few runs,I would take the diff apart and check for wear on the internals and maybe even the nut what the diff screw threads into as the nylon part my be worn and the diff screw might be twisting out after a run or two.
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