4wd light flashing and only disengages 4wd when key is cycled

‘06 engages 4hi (transfer case actuator and front ADD both cycle) but will not disengage back to 2wd when the selector switch is switched to 2wd unless you turn the key off and then back on again.
4hi light flashes constantly when in 4hi.
Will not shift into 4lo at all. When the selector switch is switched to 4lo, the 4wd light continues to flash and the 4lo light flashes as well as the 4wd ecu beeps constantly.

how do I test the two position indicator switches that are mounted in the transfer case actuator?

 

https://www.tacomaworld.com/threads/transfer-case-transfer-cases-in-first-and-2nd-gen-trucks.345652/

 

Tap on it with a hammer. Read above thread.

 

What am I tapping?

 

Lightly tap on the front diff (ADD). I was able to get mine back into 2W this way. Next listen to hear if it is working. If you can hear it but it wont engage its probably stuck or maybe a gear broke inside like mine.

 

Lots of info in the first 3 links here
https://www.tacomaworld.com/threads/4wd-system-help-and-information.696298/