I think my turbo may be failing...

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Yeah pretty certain. Noise appears when i lift off the throttle. Not present when accelerating.

No issues changing gear, not clunky, very smooth.

No chunks of metal on the drain plug.
 
There used to be a paragraph in the old Haynes manual for Series models that said something about whether it was worth rebuilding the gearbox or not depended on how much inconvenience and noise the driver was prepared to out up with. Maybe the same applies here.
 
Use the standard landy diagnostic. Drive it until something breaks and that'll be the problem.
 
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