Horrible grinding noise!

Drove from Toronto to Barrie today at a quick pace (dont know the speed cause speedo doesnt work yet) and as soon as I get off the highway I hear a horrible grinding noise (like gears crunching) coming from underneath the car.

I pull it over and check underneath cant see anything. So I proceed to drive it slow and check all the gears, everything shifts fine but the noise is there.

Limp it to my buddys house and lift the rear end up, spin the shaft and the noise is non existent. The diff still works. There is some play in the shaft but nothing too bad. I cant see anything wrong. By now the car has sat for about 15 min. I start the car up and go for a ride and the noise is gone!

The tranny fluid is brand new with Redline MT90 but the diff oil hasnt been changed yet. I am wondering whether it could be the diff that has overheated and once the fluid cools the diff works again.

Im lost here, should I attempt to drive the car home or tow it?

I had a messed up nosie and it ended up being the wheel well tearing by the tire, check to make sure its secure.

does the noise come and go when you press the clutch?
i’m thinking release/throw-out bearing :dunno:

The noise isnt affected by the clutch. Like I said everything works normally now, just a terrible grinding noise was heard.