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Axle looks ok, as do the bearing fit, but I guess I'll find out more when I hammer them out.
The bearings are rough, so it wouldn't surprise me if I found a bunch of metal shavings in one or both and that might've been the cause of the drag.
I'll stick new bearings in and see what happens, if it's still shit, it'll get donated/recycled and I'll find a new wheel for the bike.
hippy
Check the axle for wear.
Those threads are prone to wearing out given how fine they are.
Also remove the disc rotor and check if the bearings still sit snug. The hub shell could be flared if you could push out the bearings with little to no resistance, which I have personally attended to.