2014 Toyota Rear Diff. Noise

My knowledge of rear diffs. is negligent, so with that, here's my issue:

I lose traction very easily when going up a slight incline when its wet. When I do, the yellow light of a car skidding flashes on my truck and a hear a "clanking" noise coming from my rear diff. as it tries to correct for the slippage. Is that a LSD in my diff trying to catch?

And when I turn the traction control off, the "Auto LSD" light comes on the dash. What does that mean exactly?

The truck is a 2014 Tundra SR5 4x4 Double Cab with the 5.7L engine.

Any info would be greatly appreciated, thank you!