Just changing the transfer case oil might be enough to get rid of the message. It was like that with my 2008 auto transfer case. Results will vary.

Good luck.

SD

 

My mechanic said I needed to change the transfer case motor...it's about $165.00 on ROCKAUTO, or you can spend an additional $100 at O'Reillys....depends on how soon you want/need 4WD.
I have not tried changing the transfer case oil...if it needs changing EVERY 50k miles that might be a problem... since my 03 Avalanche has 315k miles on it and I really don't know if that fluid has ever been changed...mine is currentlying out at the moment and I was thinking of ordering ANOTHER transfer case motor..( this will make #3 that I have put on ), don't know if water is my problem but my 02 Tahoe doesn't have this problem and it has 245k on it...