It's to alleviate tightness, noise, and excessive tire scrubbing... which is common on new units.
I've left the modifier out of my limited-slip axles for 20+ years (all used units) no problems; just good traction. Except - when the unit itself is inadequate for the tires, power, and payload...
Somebody may have overdone it with the friction modifier additive.
Try flushing all the oil out (brake-kleen, etc) and reload with basic gear oil. See if you get any grip back.
Fwiw, I haven't put modifier in our KJ in 13 years. Several gear-oil changes later. Grips just as well as when we got it.
I am at about 3" lift and have not had any issues with the CV axles. It's is a gas V6 model though, and I dropped the engine cradle about 3/4".
I thought the CRDs axles were slightly different lengths for engine clearance. (Diff mounted further offset?)
Thicker lube protects better where high heat is generated. Without the high heat, it adds resistance, and may not flow as well.
I have been into the KJ's rear end for 3 times in 318k (km), and each time it's the pinion bearings going south. The 2nd time I changed all the others too - just...
That's most definitely an auto trans 'feature' - they make heat.
Our manual trans '05 engine temp comes up to 12:00 position and is unwavering , even after long hours plugging around offroad in the mountains.
As cheap as the jobber arms are, I have no issue changing it as needed. I'm on my first replacement since original - now 318,000km and a spare new one on my shelf.
Note: if you are lifted, there is a definite tendency to tear bushings due to the angle. I changed them once (in the factory arm)...
I hadn't driven an auto one until my work put me in a rental unit a few times. Ugh!
Our 2005 manual (6spd) lets you keep the engine in the powerband - just pick the gear for the speed you are going. The 3 selections for the auto just don't cut it.
The 96-02 4runner rear coils. Have to cut a little bit off the top pigtail to get them to seat. I'd say about 2" of lift.... got rid of the rear Teraflex spacers that way.
Last time a changed front speakers on anything (95 f350, 20 years ago), I found some MB Quart components. Mids were direct fit in the door, and surface mount the little tweeters in the corner of the dash/windshield.
A performance (louder) exhaust knocks down tire noise too!
Disclaimer: I have no ABS or "hill start" experience with the Liberty, so I don't know what that system is capable of.
From what you've described, there may be something besides the brake pedal that can apply the brakes.
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