Update: took it to a local shop and after about an hour looking at various things they discovered it was a loose e-brake shoe causing the noise (rubbing on the hub). There are two spring loaded screws that hold it in place and one of them worked itself loose ( it literally fell out as he was taking rotor off). The brake shoe was crooked because of this and that's what was causing the rubbing.
No diff issues...I just changed mine about 7,000 miles ago. Thankfully this was a cheap repair.