Smoke From Left Rear Wheel

It could be a parking brake issue but it could also be a failed wheel bearing. If you get that wheel off the ground, does it flop around? If so, you need at least a bearing. It may have damaged the knuckle as well. It should have made a distinct roaring or humming sound as it was failing.

Why would you be using it like that?

Do the wheels turn freely?
What about the parking-brake cables?

You have something seriously wrong with the assembly of your brakes!! Get it looked at by a knowledgeable person with a picture of the correct assembly from a manual.
Don't drive it!!

is the creaking coming from the front or rear of the vehicle? if its in the front, it could be a bad strut. 2011? the vehicle should be under manuf. warranty. take it into the dealer and they should fix it for free and even put you in rental car if the vehicle has to stay for an extended period of time. make sure you are under 36,000 miles for the manuf. warranty to apply. good luck!

if its rear drum brakes, you probably have a sticking wheel cylinder. or a brake adjuster that's adjusted too tight. If its four wheel disc brakes it's probably the emergency brake cable/ tension mechanism not releasing.

Not understanding you 3 wheel drive thing, But I believe that the Xterra are a front wheel drive based engine and if that is the case most front wheel drives will pull to right at excelleration and then to left under letting of excellerator. This is do to engine torque but if it is extensive you may want to check motor mounts.

The brake is probably frozen, take the wheel off and free up the brake. If you have rear disc brakes, you need to remove the caliper and compress it with a clamp.

Take it in for proper diagnosis - that's not supposed to happen in an 'ALL WHEEL DRIVE' - all WHEELS ARE SUPPOSED TO TURN.

At that mileage it could be, and most likely is given your description of the noise. I assume it reduces in volume as you slow down. If you can find a quite piece of road drive up to where the noise is apparent and lightly swerve from left to right. (Don't roll the car!! ) If the noise reduces as you swerve left then its the left bearing. If its when you swerve right that the noise reduces its the right bearing. If its both the only way is to jack the rear up and spin the wheels as fast as you can and listen. If there's a hint of a rumble from it, its that bearing or both. It should be completely quite apart from the slight hiss as the shoes rub on the drum.
35K may not seem much but if you don't know the history of the car it could have hit a bad pot hole or even had a knock on a kerb.
I have replaced bearing with a lot less miles than yours.

Cheers John