Loss of power hard shifting
SOURCE: holes in the transfer case of a 2002 gmc duramax
well there are a few options, depending on the wear of your transfercase you can just replace the rear housing and install new pump clips from gm, jb weld and other bonding agents will not fix the problem but rather prolong it, I just pick up a reman this week for my own truck that was only$1100 great deal compared to junkyards
SOURCE: My Duramax diesel lost power
Possibly the rpm sensor malfunctioning, load test battery check and clean terminal connections. You might be able to check the sensor by bypassing it. \if the connector is two prong take a piece of wire strip both sides of wire and stick them into the harness side of the connection. if the rpms go to max you know you have a bad sensor. Good luck.
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