I'm trying to understand why the PO would have used a bolt and washer on one side and a retaining ring on the other if the same hub was being used?
So what keeps the axles from moving in too far with the Warn lockouts?
Sometimes nothing. Since 99% of Warn hub installs on Early Broncos don't allow the re-use of the original style snap ring, some will use the bolt and washer idea, others find they can't because the holes are not threaded on some axle shafts, and still others just don't bother.
It's intended for you to reinstall the snap rings of course, but sometimes you just can't. Not without a lot more work that is.
In the end, the axle movement in and out is not much of a problem even for people that still 4-wheel their rigs a moderate amount. For someone who's not going to have it in 4wd very much at all, the axles will just float without being under pressure.
They might still float too much sometimes, but with no real stress being put on them while spinning, it's likely a non-issue.
There's still the unknown reason for the change on yours to deal with of course. But I agree that it's likely not going to cause you any trouble yet. We'll see if that holds down the road when you pull things apart though.
Very strange mod for sure. Maybe they sourced an oddball outer shaft to replace a broken one? Might have come from one of those '80's Dodge 1/2 ton/Ramcharger applications with odd locking hubs perhaps?
Hard to say.
Paul