Any of you guys had problems passing inspection with a bullet dumped at the axle? I've heard they fail because of exhaust fumes.

 

It's not the fumes...
most inspectors will not pass it because by state law the exhaust must exit behind the car or to the side.. not under the car...
It's a visual fail....
put it like this...
If the exhaust exits anywhere under the driver/passenger compartment it will fail. thats anywhere from the rear axle to the Engine, in a car...
Rules are different for a truck.