TRAC operating and weird odor.

First of all I hope this in the correct section.
Well we had a significant snowfall in MA overnight. I got to try out my new to me 2011 4x4 Taco.
I noticed that when the traction control kicks in during 4hi operation, I get a funny smell.
I don't know how to explain it. It does not smell like burning or overheated brakes or rubber,or clutch material. I have the manual 6 speed and am not at all over revving or beating on it. Giving just enough gas and clutch to get moving in deep snow. If it helps I drive an 18 wheeler for a living, (20 yrs.) so I know how to clutch.

 

I just saw another thread suggesting that gear oil could be pumping out of the front diff. breather and or grease flying off of the front yoke onto the exhaust?

 

That doesn't not sound like a good thing... If it is happening you should see oil around the breather. The front diff breather is under the hood.

Here's the best pic of them I could searching around a little... This is on the drivers side of the motor compartment