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Whole gearbox swap = easier than repair. I find it easier to pull the gearbox out from under rather than pull the engine from above. The drive shafts can be left to slide off as you take the box out, no need to pull them off first. Once the gearbox is clear of the bellhousing of the engine, push it left, remove shaft then push it right and remove the other shaft. Lining it back up if stub axle is a little tricker but possible. I’ve done it several time now and it works a treat!

yup, swap out the trans. you mentioned noise was only in 2nd gear. bad diff would make noise according to speed of the car regardless of gear

I forgot it had electric power steering. So that's one less thing to worry about. lol 99% of the time the AC won't turn it, it's because you're low on refrigerant and the low pressure cutout switch is tripped. There's no point in doing any other diagnostics until you get a set of gauges on it and check the charge. An ER27 is a big EA82 engine, with the same bellhousing. A newer engine will need a bellhousing adapter and redrilled flywheel, unless you run a newer transmission too, which is its own whole set of adaptations. Pitch stop is the link on top of the engine to the firewall. You have to fab brackets for it for an engine swap.

I could be done if several components were adapted to work between the two engines. Wiring looms can be laid over each other and whichever one is needed is the one used. Realistically though, once you go for the larger power and more reliable engine you won’t look back. Tuck the original parts under the workbench all sealed up and labelled for a future resto - if it ever happens. That’s the plan for my brumby too - upgrade the drivetrain, everything factory that’s removed is kept for future resto options (that will no doubt never happen).

If it were me, I'd be collecting parts to keep the ER running before thinking about an engine swap. I know the oil pumps and water pumps are higher flow than the EA pumps. Parts is going to be the everlasting gobstopper, you've just got to be stubborn and eat the elephant one bite at a time. My EA82 is the exact same way, but mine is more of a loping "rap rap rap rap" that's a lower tone, not a "clack" nor a "tick". But my oil pump also leaks from the "freeze plugs". Once my engine is warm it's quiet as a field mouse. I run 5w30 in the winter and 10w30 in the summer. If you have the vision, keeping the ER27 would be the way to go. They're very uncommon and you'd be keeping a piece of Subaru history alive. I've never had the privilege of hearing, seeing, or putting a wrench to one but if they're anything like their 4-cylinder brother, then it'd be extremely adverse to dying so long as the fluids are maintained. Good luck the XT6 is up there as one of the weirdest Subarus. :]

www.car-part.com is a good search platform.