The 4WD in this vehicle is computer controlled. There will be diagnostic codes stored that will aid in proper diagnosis and repair of this problem. As there are several common / expensive failure items, it is best to have the codes read using a proper scanner. Some of the cheaper code readers may not work in this instance and a more professional scanner may be needed to retrieve the codes. Once you know the codes, a better, accurate diagnosis can be made.
FWIW - The encoder motor on the transfer case is a common failure item. The instrument panel switch module is also.
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