The preload is for the two tapered roller bearings. It's ajusted with shims till a drag is noticeable.
I suspect the same or excessive lash letting the sector roller hammer the worm. I've got 4 or 5 of these boxes and seen several others. Most have worm gears that look chipped, not worn, at the center (high point of the worm). Not what you would expect from lack of lube or extreme wear, corrosion, etc. The sector rollers almost always look OK.