Ok sorry, I re-read this part more carefully (I actually skimmed right over this originally),
behind the front drive shaft output ... cover pressed into the bearing opening, it looks like a small paint can lid?
...and I have to say that I've never seen anyone do this before. This is
NOT a Type 5 PTO case. Sorry for the confusion. I'll see if I can find a picture of Marlin's PTO case for reference...
We scrap a lot of these transfer case housings (housing #3) and pull out the metal dowel pins as well as pop out that front output gear cage bearing. We built a jig that holds the case while a swift blow of a hammer pops a hole right through the case where you have that large freeze plug installed.
So it looks like someone serviced the cage bearing -- which is not serviceable as far as I know -- by breaking the case, and then carefully machined it so that they could fit a large freeze plug in there. That is the strangest thing I've ever seen to these gear drive cases and I've been around them for a long time.
If you are planning to tear your case apart to do any work, let me know. If you'll willing to pay for shipping and $5 for our time, then we'll send ya a good housing #3 with a good used cage bearing. Whoever did all that work on that case really stepped over about fifty quarters to pick up a dime.
Regards,
BigMike