Will axle slip out if transfer case is missing splines

You never said front or rear axle.

Front passenger axle. Sorry. This ordeal has me spacing out.

I am reading, " The inner CV joints are retained in the differential with the aid of a spring clip", but there should be no splines missing. If there are splines missing, it would seem to me that the axle would slip while turning, not pulling out because of missing splines. Can you post some photos of these missing splines?
Are there part numbers on these axles?

The mechanic who diagnosed it is taking video which I hope to have later today. Just to be clear, could the splines have been missing and the axle not slip? Because the vehicle did not have a problem with the axle slipping until the first mechanic said to replace it because it was causing clunking noise. Now that I told him why it is slipping, he is saying it has to have been like that before he put in the new axle. I believe he damaged the splines when removing or installing the new axle since he took over an hour to get the old axle out and tried to put in the first axle and claimed it did not fit. I feel he is trying to cover his ass as he refuses to look at the car again or refund my money. Thanks!

The last and first procedure they list when removing and installing this axle is remove and install a new snap ring.

You may just have splines in the differential that are ruined. It may be worth a closer look.

To further clarify it did appear the axle would slip when turning. I was left stranded at the end of a street twice while attempting a turn and once when I was backing out of a parking space. Any information you can provide on how the axle should have been replaced is most helpful as I may need this as evidence. Thanks again! Hopefully I can tip you or something!

So if they were messed up before the repair, what should have happened while driving the car? I am assuming the axle slipping would have been a symptom but that did not happen until the repair was done.

Instead of slipping, I suppose it could have knocked.
I think if the axle keeps pulling out, the problem would have to be with the differential, where the axle splines go into and where the clip is supposed to hold the axle in. It is worth a look to inspect that and see if something is wrong and the reason the clip does not hold.

Okay then it could not have been damaged (meaning the transfer case or differential) before the new axle was put in is what you are saying? Because it would have slipped or knocked and the old axle was fine. Never slipped or knocked. It was just a clunking noise I was concerned with. Please let me know if I am right. Thanks!

The best thing to do is have them look. If the very first thing was a knock and when the axle was pulled out, if there was nothing wrong with it or has missing splines, then it is worth a look at the spot where the splines fit in the differential and also concerning is where the metal from these missing splines went. They cannot just go anywhere they please, like get stuck in between two spline parts and cause noise.

Okay great. I have a starting point. Thank you for all of your help.

You are welcome!

Just to update you. The spring that keeps the axle in was damaged which is why the axle will not stay engaged. Being this is the case, is there any way this spring could have been damaged before repairs were made and the car would drive fine without the axle disengaging or would this be something that was caused during the new axle installation? Your input is appreciated. Thanks!

Sorry I am not sure what you are asking. Can you please clarify?

I know you are trying to find who to blame for the axle falling out and all the money spent. The best person to ask is the person who found the spring broken. Unless I see the spring and was actually doing the job, then I might be able to tell you when it failed and maybe why but over the internet like this, I do not know. Perhaps what you should be asking of me is if there are any technical service bulletins out on a failing axle spring or axles pulling out.
I will run a search right now.
I did not find any TSB.

Ken, the mechanic who put my axle in has given three excuses as to why it is not his fault. After much money spent to fix and diagnose why axle is falling out I found out the axle replacement is suppose to be a half shaft only. Mechanic removed entire shaft. Jaguar said the shaft part in transfer case is not to be removed because the risk of damage. Now mechanic who did the work is saying the person who put in the axle he took out damaged it. This makes no sense since if this was true, the car would not be able to drive since the axle cannot stay engaged. Also, if he believed this he should not have done the repair. First time it was the part and second time it was the original axle was installed wrong and now it is the axle he replaced was put in and that person damaged the spines and spring. Splines and spring is causing axle to slip so this does not seem possible it was already damaged as car drove fine and just heard clunking noise when driving. Front right axle replaced and still heard clunk noises. Now ball bearings seem to have been the real issue.

For us to tell what is going on can you upload pictures of the damaged parts? Can I ask if the car has been in an accident?

I would save the old parts, any statements, file a complaint with the national highway administration, keep an eye out on if anyone else complained of the same axle coming out before, what was done to fix it, what caused it and hopefully who is responsible to cover the cost in case you find enough evidence to sue for repair costs. All of that can be done here: https://www.nhtsa.gov/

Ken, vehicle was not in an accident. It was purchased in February and no accidents while I owned it. I can take photos of the parts. Axle never slipped until I was told axle was cause of the clunking noise coming from the car. Clunking noise was still heard when the axle was remaining engaged after he put it in.

It sounds like something got messed up somehow. Please post the pictures.