No low spot in the line, it literally makes no sense.
On my 01 burb, every time you filled the front differential it would puke out of the breather till it found the level it liked, Jason4x4's burb did the same thing. He said GM service letter suggested putting a simple inline fuel filter in would fix it... Apparently the fluid would get in the tube and air would push it all the way up and out. The filter gives it a place to burp air past the fluid.....No low spot in the line, it literally makes no sense.
I'm lost and confused makes no sense

Yes, I believes so if should have been the front outputConfused often makes no sense...
What happened to the seal that was leaking? Has that resolved itself?
Vent to the front grille.. Problem solved, long enough to house that excess fluid.
Hmmm, interesting, what kind of drain back did you create?

Hmmm interesting, the fluid level on the t case is perfect, the trans is a tad overfilled, have seen a lot worse.
The overflow mtn dew bottle is still filling up.
Here is my next project, finding out why these all read low...
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And getting the coolant gauge to light up.