When I changed the fluid in the rear end when I got my truck it was like 2 quarts overfilled. It was all oil not mixed with water or anything. I'm still trying to figure out how someone managed to get the extra 2 quarts in there lol!
There is a hole on the side of the case that needs to be open when you put fluid in the differential so that the excess fluid can run out. The fill hole on the back is not supposed to be the final height fluid hole.