UPDATE:
Carbonetic 1.5 Way Carbon LSD is now installed in the car!
Initial impressions are better than expected. I have experience with this diff in my old 350Z race car, however, the race car also had solid differential mounts, no interior, and a loud exhaust so I wasn't quite sure on how much noise it would actually make in the 370Z with full interior, stock cat-back exhaust, and regular diff mounts. The instructions say that the diff will emit the most noise immediately after install and the noise will quiet down as the diff breaks in. Well, I heard no noise at all from in the car right after install. I performed the break in procedure and still no noise! I can also tell you that it is not at all jerky like most other 1.5 way LSDs I have tried. Starting from a stop and tight radius turns were all very smooth. This is an incredibly streetable LSD and I vow that whatever cars I have in the future will have a Carbonetic LSD in it. I haven't pushed the limits of the car on the streets with the diff yet as I haven't changed the oil after break in, but like I said, I have experience with the Carbonetics diff in my old 350Z race car and it performed incredibly so I am not at all worried.
Now onto the fate of the stock VLSD. The good news is that the large chunk of metal I pulled out of the housing when I changed the oil after the first race was not part of the VLSD like I had originally thought. It was a magnet that gets glued to the inside of the housing from Nissan to collect metal bits floating around. The bad news is that the stock VLSD was indeed completely shot and acting as an open diff, however still in tact. I am guessing that the heat generated in the diff housing during the first track day broke down the glue holding the magnet to the housing and thats what caused it to break free. So to offset that, I am going to order a Project Kics magnetic drain plug which will serve the same purpose.
I am relieved that the actual diff didn't have parts breaking off of it, but still concerned with the amount of heat generated back there. From what I understand, the Carbonetic LSD will generate less heat than the stock VLSD, but I am still working on getting a differential cooler kit on the car sooner than later.