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Based on what you said, this looks to be faulty rear wheel hub bearings and this lead to the inner hub seal failing and that is the source of the leak and the odor.
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The inner seal does not hold the bearing. The bearing holds the wheel straight up and down to the the axle tube and the seal prevents the axle soil used to lubricate the differential, pinion, and outer hub from leaking. There are 2 seals at the wheel. The O-ring around the axle shaft, rarely ever fails and the hub seal, between the hub and axle housing tube.
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