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L and LS are trim levels.. LS is the higher end package, L is the base package. My suggestion here would be the 4. L Grade: L/RHD for a base AWD model, however, there may be no actual difference between that and the LS (check part numbers elsewhere for both, perhaps?) the FWD fuse powers the Duty C solenoid.. if the binding goes away, the solenoid is fine, the issue is clutch pack - if the binding does not go away, it is the solenoid that is bad and maybe clutch pack wear. For a look at the basket, and the grooves that were mentioned.. take a look at the images in this thread.. there are some good pics down the page a little https://www.subaruoutback.org/threads/intermittent-awd-issues.506385/page-3

I wasn’t suggesting an EJ22. EJ18s are great, I’ve swapped them before and it’ll be great in an EA vehicle. Im suggesting to bolt an EJ22 intake manifold (and it’s wiring harness) onto the EJ18 engine and run an EJ22 ECU. So keep and run your EJ18 but with EJ22 electronics that’s more available, and less convoluted than older EJ18 manifolds.