In most applications, it is now recommended to always put your best tires in the rear. "Best to back" is the saying. This is due to driving dynamics and the driving skill of those of us who are not racing trained (ie: everybody). This dictum applies equally to both FWD and RWD cars as it has nothing to do with the 'driven' axle and more to do with road holding.
With that said, due to the VC in the early AWD cars, if you have two new tires they should go on the FRONT axle to avoid blowing your bevel gear up. If the difference in size between the front and rear tires is too great it will still ruin everything, but if the difference is within some small variance having the larger circumference tires on the front will take the strain off the bevel gear as the front axle will be spinning more slowly than the rear and the VC will transmit less power to the rear axle.
Imagine the exaggerated scenario in which the front tires have 100cm circumference and the rear tires have 50cm circumference. If the vehicle travels 100cm, the front tire will rotate 1 time, while the rear tire will have to rotate twice - you can see the rear axle will need to spin much more quickly than the front.
In our VC AWD cars, the VC transmits power from one axle to the other through speed differential - if one axle is spinning faster than the other it will 'drag' the other along.
In the exaggerated hypothetical I proposed above this would cause the rear wheels to load the bevel gear from the rear - ie: the rear tires would be trying to drive the front drivetrain, which would probably eventually wreck the drivetrain.
But if the difference in circumference was more reasonable the load from rear-to-front would be minimal (at least less than the normal front-to-back 5% loading) and take the strain out of the system.
If the larger circumference was in the rear, the VC would constantly be trying to drive the rear axle (already biased at ~5% as mentioned above) and the bevel gear is just not meant for that kind of continuous strain.
It is for this reason I have also resigned to always put the spare on the rear axle - whatever tire is damaged, I will move things around to get the donut on the rear axle. Actually for me personally right now it doesn't matter because I have the center driveshaft out, disabling AWD. This is a good solution for you too as you would then not have to worry about any of this!
You could buy two tires and put them on the front and you'd probably be alright (not making any promises of course :) ) but you'll want a second pair as soon as you can afford them, due to the aforementioned driving dynamics based "best to back" rule and to restore proper AWD function so you don't ruin your bevel gear.
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1998 V70 AWD->FWD Turbo 200k+
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