Clunking front driver side

most likely blown rear drain fluid and inspect the gears/pinion

You have to jack the vehicle off the ground, then grab each tire at the 12:00 and 6:00 positions. Then as hard as you can try to wiggle the tire up and down. If there is any movement then that wheel bearing needs to be replaced.

1 Collapsed wheel bearings
2 Lose wheel nuts

Jack up front drivers side wheel and grab the top and bottom of tire, give it a good firm wriggle and see if you can detect any movement.

The engine is malfuncioning and the internal chesis is destroyed

Does the driveshaft for the front wheels turn when in 4wd? The actuater might work but the diff lock for the front wheels might have broken. If the front driveshaft does not turn when in 4wd, the transfer case might be the problem.

If its not the bearing and your Mercury is front wheel drive, it could be the "CV" joints.
It could be both....

Is the wheel rubbing the brake caliper?

Is something like the wheel well liner rubbing the tire(airflow pushing it into tire)?

Jack the tire off the ground and rotate it by hand. Push in & out at the top, sides, and bottom of the tire. Little or no play is considered acceptable. If you get a "clunking" sound and/or a lot of play the bearing(s) are bad. (If front wheel drive, chock rear tires, put transmission in neutral so you can rotate tire.)

Hope this helps.

you lift the car up on jacks so that the tires are off the ground, then you put jack stands in placement. then you loosen ONLY THE BOLTS ON THE TIRE IN THE AIR remove the tire let the car down on to the jack stands, and move the jack to the next and do the same what you do is take the passenger side back tire and switch it with the drivers side front tire. then you take the drivers side back tire and switch it with the passenger side front tire. make sure the bolts are tight as you can get them then you are done. i hope this information helps. Be careful and drive safe!

Sounds like a bad cv joint. Easy way to check is to raise the front of the vehicle so both front tires are off the ground. Use jack stands under the vehicle and block the rear tires. Start the engine and put the tranny in drive. Let the front wheels rotate while the engine is idling and turn the steering wheel slowly in both directions. Listen for the clunking noise. You may have to speed the engine up a little to make it work.

Move the passenger side rear tire to the front, and passenger side front to driver side rear. Switch the driver side rear tire to the front and driver side front to passenger side rear. Repeat this "X" pattern each time you rotate the tires. Rotate the tires from side to side if the tires are different sizes on the front and rear.

This is the better solution. Hope helped (remember rated this help)

For more details about Jeep Cherokee, review the Service Manual.

Good luck.

need to jack that side up and check for looseness in wheel the popping is probably your axle going bad since the boots are ripped. might also have a wheel bearing worn this will cause the tire to lean and vibration jack up and shake wheel