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It certainly could be the front differential. Just make sure that it isn't in fact the output yoke on the transfer case, at the rear of the front driveshaft. It is a common failure point on your model, and the symptoms are very similar. Others have had misdiagnosis of front differential when it has been this yoke.
Or, your shop may be very competent and it could be the differential. But here's hoping it isn't, as the yoke is much cheaper.
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