Well the axle bearing should have prevented that axle from moving either inward or outward. You got problems elsewhere, and not in the carrier.
Factory AMC 20 open carriers have a cross pin that holds the spiders. That cross-pin prevents the axle shafts from moving inward. When you pulled the open carrier, you installed a locker WITHOUT a blocker in the center. This allowed the shafts to move inward and rub, causing your tire issues.
The tire issue is still a WHEEL BEARING failure though. Those bearings should be shimmed in such a manner that the axles can't move in. Your bearings are NOT correct.
Additional concerns
1) Do you have factory shafts / or aftermarket ? The factory shaft has a crush nut on the end that needs like 400 foot pounds to be properly tightened.
2) Your wheel backspacing is wrong. If the axle moving caused rubbing, then when you air down your tires to trail pressures, you've probably going to still have this problem. I'd seriously look at them wheels, and consider getting about an inch greater backspacing.
Tony