I am now convinced that I am getting massive amounts of air in the system and this is not the filter or cavitation for some other reason. Lowering the arms and bucket is only happening from weight. If I leave the bucket so it touches the ground with arms lowered, so with the bucket edge slightly downward, then lower the arms, the bucket just gives way and folds up. Air.
But I have sealed all joints on the intake line. I have even checked the tightness of the lines to the loader itself, even though AFAICS even the the return will simply put air into the oil and not into the intake for the pump.
I can hear air trickling though the pump even when it's not being asked to do anything.
AFAIK, cavitation itself produces no air as the air is not there. It causes bubbles of vacuum, which then just collapse again.
I am buying a manual and awaiting electronic delivery, but the question of whether the oil in the sump is for both diff and gears I would love an answer to if anyone knows.