Hi Shaun, I too bought a neglected 80 so I feel your pain to an extent. As for a front axle rebuild, I think most of them out there (that haven’t already had the treatment) will need doing, these trucks are all getting on a bit now and such work will most likely be overdue.
Always nasty to see curls of swarf like that coming out, but it may not be as bad as it looks, if you’re lucky. It may be from a failed oil seal or something less important than a differential or such like.
But a rebuild it will need, do you hav a clicking on full steering lock, forward or reverse? if yes, that will be the CV joints inside each of the cannonballs, each end of the axle.
The problem with a job like that is the lack of knowledge, so a search on here will reveal several write-ups of similar work, by
@Chris and others...
You will likely need some special tools, which you may be lucky enough to borrow or buy, if you can afford them. LC parts are not cheap, but once replaced (with OEM genuine parts) it’s unlikely that you’ll be doing that work again, even if you keep the truck for another 10-20 years

.
The UJs on the props are not so expensive and they are DIY jobs, but again a search on here will reveal some very useful tips.
Don’t rush to replace parts until you’re sure they need it.
Replace all fluids, brake, clutch, gear, axle, transfer box and engine oils/ filters. As Scott has asked, did the g/box oil change make it drive any better?
Watching with interest, you’ll be surprised how better it will drive with a few bits and pieces sorted.
Best of luck and don’t give up...