I did mine last Fall (1999 C5 coupe). I removed the drain plug (10 mm square drive for a 3/8 ratchet) and let the fluid drain overnight. The drain plug is underneath the differential carrier, so all of the fluid will drain.
Then I added the GM fluid including the 4 oz. of modifier and drove the car about 500 miles in the next month or so.
Then, following a several hundred mile highway drive, the rear differential began chattering on turns from a stop (such as turning at a stop light).
I took it to a Chevrolet dealer who said there was a TSB that instructed the dealer to add another 4 oz. of the GM friction modifier, then drive the car in 8-10 "figure 8's" in the parking lot to work the new additive into the plates.
That solved the chattering.
Good luck.