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Coil spring base retainer on axle

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On my 2001.5, I was doing some routine maintenance and had it up on the lift. I noticed on the passenger side that on the top of the front axle, where the base of the coil spring sits, that the “retaining cup” that “corrals” the base of the spring is rusted out especially toward the midline of the truck, maybe for 2-3 inches.
Has anyone else noted this, and is it a concern, safety or performance wise?
 
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