Dana 60 problems

[bruce 1]

I have a 70 ford Dana 60 , with 35 spline outers and Yukon locking hubs, with X-LOCK FOR DANA 60 Also.
I think the X lock nut came loose, it did some damage , my question it should I replace the axle? (A friend says it will not hurt anything where the damage is)
The stub got hot also should I replace the stub?
Pictures to come