There is a big tolerance in the axial play for the rear, like 1/32-1/16 inch, IIRC, so it can move in/out a lot and still be OK.
If the bearings wear, there is a spacer that can wear which adds to the axial play. These spacers are replaced when you replace the bearings and seals.
If the noise is heard when rotating the wheel, but not from side to side movement of the axles, then it could be the pinion gear and differential gears. When checking the axial play with a dial indicator, it would be a good idea to measure the pinion gear play, which can usually be fixed with the proper spacer.
Just a note that if you decide to remove the axles and replace them with good used one's (I personally would get new bearings and seals and use the old axles) Don't mix the right side and left side axles either from the doner car or your car. The shafts take a set in the metal molecular orientation over time in the direction that they are rotated for the years they are in use, and putting them in opposite directions can crack the axles.
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