If the wheel snags when spinning with the cassette turning with it, then you have both an axle and freehub problem. These are separate issues, and possibly the hubs bearings just need to be cleaned and lubed. But it's not a good indicator, I'd inspect the condition of the hubs bearings before buying a freehub body (new or used).
If this needs lots of dough, you might want to pass entirely, especially if the rim and spokes (the wheel) aren't otherwise in near perfect condition.
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