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Chain. And they very rarely break. Have you jacked up the rear wheels and put it in 4wd to see if the front shaft is turning with the rear shaft. This will determine if it is a transfer case problem or a front differential actuator problem.
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the transfer case only engages when in 4wd. check the universal joint, it connects from the drive shaft to the rear differential. it may need grease or to be replaced.
on the 1999 silverado the transfer case has an actuator motor to engage from high to low range ,for 4wd there is an actuator motor on the front axle, had same problem in my 98 changed and works perfect
if you had the rear wheels still on the ground in 4WD and it never drove the vehicle off the jacks or stands , you have a problem in the transfer case
in other words the transfer case is not selecting WD
I HAD A BLAZER WITH THE SAME SYMPTOMS REPLACED THE TRANSFER CASE MOTOR AND SOLVED PROBLEM. TRANSFER CASE MOTOR SHIFTS FROM HIGH TO LOW GEAR IN THE TRANSFER CASE AND TELLS THE FRONT ACTUATORS TO INGAGE FRONT HUBS . MOTOR WON'T MOVE TO 4 HIGH AND GRINDS WHEN TRYING TO MOVE TO 4 LOW, TRANSFER CASE MOTOR FAILING . CHECK VACUUM LINES AND ACTUATORS ON FRONT DIFF THEY FAIL, CAN CHANGE TO CABLE ENGAGEMENT INSTEAD OF FAILURE PRONE VACUUM ACTUATORS.
Having the same exact problem but with my 1999 escalade. Thought it was the actuator bought a new one installed it transfer case would engage but front end wouldnt lock. Took it out of housing left it plugged in got a friend to go through all the 4wd for me and the plunger never moved out the actuator. Checked my wiring harness which is a four prong ann it had one hot prong like it is suppose to. Traced wires even replaced dash switch same problem. Taking it to local dealership tom to have it checked for codes. I was told it could be the transfercase actuator even though its workin that actuator is what sends power to the front to engage the actuator to lock the differential.
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