The failure modes are generally various leaks, pump failures, electrical failures, torn lines, etc. Their use in the front also often leads to broken CVs. I was joking about them only being any good for rock crawling. They're obviously useful for most cross-axle scenarios. I maintain that rock crawling is super gay though, and any route that requires less work to hike than drive. Thankfully Rovers make poor rock crawlers.
I had ARB front and rear w/ GBR HD CV and HD Axles front and rear. No breaks for about 4 years of hard wheeling in CO/UT. Standard/basic compressor. It was a daily driver so I checked the compressor/ines for leaks almost daily the system only took a new line after first install (routed the line too close to something hot). I rerouted and used conduit and never had any issues like that.
Occasionally I had to pull the line, clip and reseat (only 2 connectors at compressor and one on each diff). When I routed, there was extra line for this.
Don't remember having a any hard failure or failure to operate on a trail.
I thought that my D1 one was excellent at "rock crawling".
Its not just cross axled when lockers are useful. It is anytime only one wheel per axle has traction.
Busted axles with any diff is usually one of 2 things.
1- One tire lifted in air, one slipping. Both get traction while on skinny pedal.
2- Both tires have traction and you turn to hard.
Either of the above can snap an axle. HD or not, locked or not. HD will take more to break though and if careful, like I was never experienced a break with HD axles.