Eeeesh, I am stumped on that one, but no, when a noise occurs that doesnt sound right, then clearly, something probably ISNT right. Without hearing the sound with my own ears, it is much tougher to narrow down the cause.

As for the traction control-tire rotation, it would/should do that first, but shouldnt be more than instantaneous before they both turned. TOD really doesnt need more than a fraction of a second to decide, who does what.