Diff and pinion questions

[p38fighter]

I had a major leak through the pinion seal. First photo shows the yoke and the wear pattern on the shaft. The "scratch" is barely discernible with my fingernail. Question should I sleeve it since its all the way out now? Who sells these sleeves?
Second photo shows the pinion seal standing well proud of the retainer cover. Can that be right or should it be level with the cover?
Third photo shows a paint mark on the diff. Is it an identifier of some type?
Fourth photo show a cast in "WAT" on the retainer. Is that an identifier of some type?
Fifth photo shows the Timken seal supplied for the pinion. I don't see how it will go in as the existing one if the stand off is correct.

Thanks for the help...

[jopizz]

You have the wrong seal. That seal fits late '59 and 1960. Here's the seal you need. Rockauto has it listed.

diff seal.jpg

[OX1]

I might check pinion end play and make sure you don't also have worn bearings, allowing that yoke move around a little more than it should.
Can even pull out pinion assembly and take a look.