Transfer Case Grinding (2nd gen)

TW,

Could use some help here. I am experiencing an intermittent grinding sound coming from my transfer case when in 2h after switching from 4h at low speeds. Did a lot of research and can't find anyone with my exact problem. I drive an 08 TRD OR manual transmission (107k odo) and haven't experienced this issue before.

Jacked the truck up yesterday evening and when through 2h, 4h, & 4lo. 4wd engages and works perfectly with no unwanted sounds. It is when I switch back into 2h that the loud grinding noise from the transfer case appears. I noticed that the propeller shaft is also spinning when in 2h (pretty sure that's supposed to spin freely) with the front tires not moving.

I can hear the actuator on the transfer case doing its thing when I have the motor off and switching from 2h to 4h and vice versa.

Attached is the video of me spinning the propeller shaft by hand in 2h with the truck off, clearly you can hear the sound of gears meshing in the transfer case. Has my actuator gone bad or is this a bigger problem?

side note: been running a 3 inch lift for a while (idk if that matters), all drive line fluids were changed a few thousand miles ago.

https://youtu.be/XdGohHzkdYw

 

Bump. Anyone know?

 

try changing the 4WD while in neutral and coasting

 

Little update on this if anyone cares but I FIXED IT.

Took apart the transfer case actuator & found corrosion on the metal contacts embedded into the plastic. Looks like it wasn't able to fully cycle. Lightly sanded them down and it has been functioning perfectly for the last 6 months.

My guess on how the corrosion got there in the first place was the breather tube going into the actuator was split and cracked at the connection point & water was able to seep in. Trimmed it down and reconnected.