Well for anyone who runs into this: the clip stayed in the groove of the differential housing. I thought it fell in somewhere. It seems like this happens, slide the output shaft back in with a few taps of the hammer and it clicks back into place.
2008 Chevy Avalanche
Pulled the output shaft out of the front diff on the driver's side to replace the seal. I noticed the clip wasn't in the groove. How hooped am I? Do I need to drop the diff now and open it up to look for it?
Thanks in advance!