Your right --bolts that attach the axle to the hub. I agree about the dealer thing,
I had the same thing happen about 3 1/2 years ago on my 97 dually. Here is the thread
"Axle Shaft Bolts Shearing Off-1Ton Dually":
http://www.tdr1.com/forums/showthread.php?t=89581
I had noticed one bolt (they are not studs) had sheared off, so I tried tightening them and 2 more sheared off. Went to other side and same thing happened. I replaced all the bolts with bolts from the dealer (about $65). I heated the remaining bolts with oxy torch and same with broken bolts to get the axle off.
The bolts had an orangeish locktite on them and so did the replacements. I did a complete brake job, replaced rear hub oil seals, brake shoes, axle gasket, wheel cylinders, wheel brake cylinders, brake spring hardware, adjusted parking brake (it now works great) and checked the bearings. Haven't had any problems since. You will need a BIG socket to get the bearing nut off.
Sounds like you have a leaking axle shaft gasket. If the hub oil seal is leaking your brakes will be soaked with axle fluid and won't work very well if at all. Also check your brake wheel cylinders are not leaking. Mine were not leaking but I replaced them anyhow (about $20 apiece). You will know when you remove the hub.
Edit: While your in there it would be a good time to put synthetic fluid (if not already) in the rear end. The wheel bearings are lubed by the rear end fluid. Do not use limited slip fluid in the rear end. I did (7 oz per manual) and I've lost the the limited slip now. I put too much in I think. Put very little grease (if any on the wheel bearings or use cam lube grease. Otherwise it may get into the rear end and screw up your limited slip. Don't ask me how I know.
Good luck,
Dave