4X4 Light Flashing... Any Thoughts?

Hey, I’m New to this sight and actually doing some research trying to see if someone else may have had heard of this problem and a possible fix? Had some issues with my 4WD engaging, this was a progressive problem, in the end 4WD wouldn’t engage (or it would take miles of driving) and the light would continually flash.
Took it to the Dealer on Monday morning, they replaced the actuator in the rear differential so now (they tell me) that the 4WD dis/engages as it should but the 4WD light constantly flashes. Supposedly this light flashes before the 4WD is fully engaged. They have spent a day and a half checking solenoids, electrical, connections, they say that it is an electrical issue but can’t diagnose it, today they had 2 master techs working on it!!

The mechanics are baffled; they even called another dealership for help, any Thoughts? The extended warrantee Co is not going to pay for days of troubleshooting this problem!!!

 

i would say slap the dealership in the face for looking at the REAR axle, due to the fact that nothing happens to REAR axle when you flip the switch.