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A couple of things you need to look at and consider, one .... make sure that the vent is not obstructed in any way. Two, after you take the drive shaft off, the very next step is to take a center punch and put a reference mark on the pinion, yoke and the nut. When you take it apart, you can easily reassemble and not over torque because you tighten only until all the marks are once again aligned.
And, just as important, keep the impact wrench away when reassembling. You could damage the bearings (brinelling) by the impact wrench pounding the bearings.
My method has worked countless times for myself as well as other good Techs. I'm a firm believer in, if you don't know what you are doing, leave it to those of us that do know or at least ask BEFORE you start.Yeah, something like your method would normally work, but at this point, I suspect OP mighta damaged both pinion bearings by overtightening. Which means two new pinion bearings (at least), along with dis-assemble the rear end and set it up from scratch.
At this stage he would be probably further ahead to go to the local auto recycler and buy a complete unit. Pull the back cover, drain the oil and refill it to the proper level after it is installed. Unfortunately, and I mean no malice nor disrespect but, the OP is in way over his head.@Hagar1 - yes, yes, I agree with all that. I was gonna write something very similar, haha.
But I think he's badly damaged that rearward pinion bearing. No way of knowing without taking it apart. But perhaps just put the one new bearing/seal in and tighten main nut JUST until pinion play is removed (guesswork, by feel, basically), then try that.
He can't do it your way (the right way), he missed the boat. So what's a viable alternative???
I know what I'd do, and I'm pretty sure you'd do same; i.e., take it all apart. But it doesn't sound like he has the knowledge or the tools.