Are you sure the converter was not the thing that was glowing red hot and not the axle? Maybe the axle was just getting hot as a result of the converter being so hot?
Can you get a picture of this as the only thing that is going to cause this is friction and if the axle is glowing then it is going to lock up and I would expect it to be making noise.
However, it would make more sense that the converter is glowing which would seem to match what they said about the converter being gutted. However, it is most likely not gutted but blocked. So let's review this guide for more info on this:
https://www.2carpros.com/articles/bad-catalytic-converter-symptoms
If this is glowing then that is due to excess fuel getting stuck in the converter and it starts igniting inside of it.
https://www.2carpros.com/articles/catalytic-converter-replacement
Let me know if you can get a picture of this and we can go from there. However, I suspect the exhaust is blocked and this is chocking the engine which is why you are seeing the issues with performance.
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Tuesday, March 2nd, 2021 AT 4:59 PM