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Is the nut lose on the rear of that shaft.
I wonder if that nut backed off some and got stuck there, far enough to chew through the case. If you look, the nut is staked, but the staking is not into the slot in the shaft like it is supposed to be.
Is the"cap" like the old core plugs used on car engines?
Yup, the staked nut has turned. But it's tighter, not looser, than it ought to be.
That's a drag!That particular failure is sometimes caused by rear bearing failure or one of the nuts loose. But humans often cause this by tapping on the shaft when removing the rear cover. That part of the case is easily damaged by use of force from the other end. It would be possible to damage it and have it break out later I suppose. But it does look like the nut is not staked properly in that photo.On the upside it's not too difficult for an experienced welder to fix.Hunter