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Yeah, the steering shaft is collapsible, but you should be able to push it, don't tap your deeply buried old tired steering column bearings, if you can help it.
No, 8.8 is low/mid grade, it's equivalent to a grade 5 SAE fastener. 10.9 is the normal high strength metric spec. (there's 12.9, but it is brittle and shouldn't be assumed better)
I mean these are a lot less critical than the thru-bolt, it just seems like you should be very certain, considering your level of mechanical experience.
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