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Too funny! 😂 I routinely see cars with large rusted holes in them. They seem to work fine. Also in my state there are zero vehicle inspections! No smog, no emissions, no brake light check etc. It doesn't seem to create carnage on the roads. What does seem to create great issues is the invention of the smart phone! Which some drivers can't seem to put down long enough to get to where they're going!

Try snapping the throttle open and see what pressure does. It's not RPM that causes change it's manifold pressure. If you just ease the throttle open intake vacuum/pressure won't change much. The numbers look good, actually very good, 26 psi indicates very good intake system vacuum.

In Utah we have no safety inspection anywhere, emissions are by county. In the counties that are trapped between 2 mountain ranges they do have emissions inspections and it so happens that the trapped counties have the majority of the states population. If you cause an accident due to some safety issue you didn't get fixed it's not pretty. Rust... Yea, we got plenty in northern Utah where they use massive amounts of salt when it snows (plenty of salt beds around the Great Salt Lake). I really don't see safety issues other than cuts if you grab a rust hole.

Can't tell where the seal is riding in your picture but here is a picture of an old early 240Z shaft I picked up that had a groove from a worn seal, for reference. Gives an indication of factory engagement. The wear pattern in your picture is very weird.

My Dad always preached to not put old parts you can afford to replace back on the car. Lots of exceptions to that statement but you all know what I'm saying.

The seal was riding here: Those wear marks indicate where the yoke was rubbing up against the bushing. Those weren't there when I installed the prop shaft. I confirmed the extension housing bushing was worn, allowing the main shaft and yoke to move excessively. Unsure if the prop shaft was balanced properly when it was shortened. The local place I took it to for balancing (after swapping in the new yoke) said it looked like it had not been balanced. Additionally, the weights they welded onto it were not tiny. So, perhaps the prop shaft was way out of balance and that is why this happened. I was able to get the transmission out on Thursday, and get the rear housing off, replace the bushing, and get it back together. But, I wasn't able to get the transmission back in the car. Unfortunately, my wrist got injured in a soccer game last night, so I won't be able to get the transmission in for a while.