Of course it's not noticed until need.

​​​​​​My electronic dial doesn't indicate what selection I'm making. Sometimes it does sometimes it doesn't. When it does I can hear the actuator engage, when I start moving it obviously disengages because I definitely do not have 4wd and that is when it throw the service 4wd light...

And ideas where to start troubleshooting this with out throwing parts at it.
Thanks

 

What is the difference in functions between the t-case encoder motor and front actuator on the 4wd

 

In case anyone else has this issue. Here's my fix.

Pulled the front diff actuator test and worked.. tried to manually engage the fork where the actuator goes and it would not move.
Pulled the axle sleeve and found 3 damaged washers. I assume 1 was jammed not allowing the actuator to do its job.
The fork and gears looked good. I replaced the washers about $20 dealer
There is a thrust washer that you must mic for the right thickness because there are about 12 variations. Replaced the seal $17 lubed the gears, reinstalled and tested. Everything works as it should now.

So what I think happened was the previous owner changed the axle seal by pulling the axle .. not the tube..
When that happened the top mic'd thrust washer fell and no longer lined up with the tit at the end of the axle shaft, and just bounced around and got crushed a few times before it jammed everything up.

All's that's left is to change the diff fluid

Tangled centering washer.. I could not buff it out

The washer to the left is the thrust washer that you must mic, it was toast as well.. the washer in-between the fork gear and tang centering washer is no longer used

Top of axle tube where everything is assembled

End of axle gear
snap ring holds down the tang washer

Axle tube