FJ Transfer Case Swap, Is This Noise Normal?

I’m about to swap an FJ Cruiser transfer case and twin sticks into my 2nd gen but then case I bought makes a funny noise when I spin it. It supposedly has 81k miles on it and works fine. Does this sound normal? It goes away if I tilt the case forward, but it sure sounds like the chain is rubbing on something.

Edit: I drained it and this is what came out. It didn’t look like the drain plug had been loosened, well, ever. I’m really hoping the junk yard drained it but I’m guessing they didn’t.